Apple Inc (NASDAQ: AAPL)’s 3rd Quarter Reports Finally Released – And The Results Have Blown Away Predictions

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By David Scouts on July 23, 2014 Technology & Software

At the end of market trading yesterday, Apple Inc (NASDAQ: AAPL) released its official third quarter earnings report on July 22^nd. The company reported revenue of $34.7 billion, and $7.7 billion in profit, or $1.28 per share.

Compard to 2013, the company had reported earnings of $6.9 billion, or $1.07 per share. Analysts had expected earnings per share of $1.23, but the latest numbers from Apple’s report have blown any predictions away.

With the impending release of the iPhone 6, Apple’s possibilities for growth continues increase. The iPhone 6 is said to debut improved features, like a bigger screen, to entice customers who have been waiting for a larger sized iPhone.

Once again, Apple’s earnings went above and beyond the expectations of analysts. This quarter, the tech giant sold 35.2 million units of iPhones, a 13% increase compared to the third quarter of last year in 2013. This figure climbed despite the fact that many Apple customers delayed purchasing an iPhone to wait for the new iPhone 6.

Luca Maestri, Apple’s chief financial officer, said in an interview that the company performed exceptionally well based on its execution. He also hinted that Apple had something lined up that would get consumers excited.

Apple’s sales were reportedly heightened by strong performance of the iPhone overseas, namely in Brazil, China, India, and Russia.

The consensus among analysts about the company’s third quarter earnings was an earnings report of $38.1 billion in revenue and $0.38 in gross margins. Apple’s actual gross margins were higher at $0.39. Gross profit margins were reported to be 43.45%, which is strong at 22.39% higher than the industry average. Although the company failed to meet expectations in revenue, Apple still managed to top estimates in EPS.

Apple’s own estimates, based on previous quarter reports, clocked in at $36 to $38 billion for predicted revenue, and gross margins of either $0.37 to $0.38.

New Product Release

Tim Cook may have been relying on the fact that that the iPhone 5C would cover the company’s gross margins, but the more affordable iPhone model did not sell as well as the company expected.

Cook stated in the earnings report that the company’s sky high third quarter was mainly due to strong sales of the iPhone, Mac, and the overall growth of the iOS. This recent quarter brought in the company’s highest EPS growth rate in 7 quarters.

Cook also said that he “can’t wait to introduce” Apple’s new products and services. He also revealed that the company would soon release the iOS8 and OS X Yosemite.

For the next quarter, Apple forecasts revenues between the range $37 billion and $40 billion, with a gross margin between $0.37 and $0.38.

Currently the stock is rising since trading opened this morning. The stock has risen 1.83% and is trading at $96.55.