Earnings Preview : Apple Inc. (NASDAQ: AAPL) Third Quarter 2010
Thursday, July 15, 2021 3:16 PM

Related Stories

Apple Inc. (NASDAQ: AAPL) is scheduled to release fiscal third-quarter earnings after the closing bell on Tuesday, July 20, 2010. Analysts, on average, expect the company to report earnings of $3.07 per share on revenue of $14.62 billion. In the year-ago period, the company posted earnings of $2.01 per share on revenue of $8.34 billion.

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions.

In the preceding second-quarter, the Cupertino, California-based company reported that its net income jumped 90% to $3.07 billion, or $3.33 per share, from $1.62 billion, or $1.79 per share, in the prior-year quarter. Revenue jumped 49% to $13.5 billion. Analysts, on average, expected the company to report earnings of $2.45 a share on revenue of $12.04 billion. Gross margin for the quarter improved to 41.7% from 39.9% in the year-ago quarter. Apple sold 8.75 million iPhones for the quarter, representing 131 percent unit growth over the year-ago quarter. iPod sales dropped 1% to 10.89 million units during the quarter. The company sold 2.94 million Macintosh computers during the second quarter, representing a 33 percent unit increase over the year-ago quarter.

In April, Apple said that it anticipates third-quarter earnings in the range of $2.28 to $2.39 per share and revenue in the range of $13 billion to $13.4 billion.  The company is famously conservative when it comes to guidance.

Apple continues to make innovative devices which appeal to consumers in a big way. The company is expected to post strong profit and revenues in the latest quarter, benefiting from the sales of its tablet computer iPad as well as the latest version of its wildly popular smartphone, iPhone 4. Last month, Apple Inc. said that it sold three million iPad in 80 days, since its launch in the US. It took Apple 28 days to sell the first million. On June 7, Apple Chief Executive Officer Steve Jobs unveiled the new iPhone 4 that is claimed to be thinner and faster than earlier versions of the device, and was available for sale from June 24. The company sold 1.7 million iPhone 4s in its first three days, marking the strongest sales debut for an iPhone yet.

However, Apple has come under considerable criticism for technological problems with its latest iPhone. Recently products review magazine Consumer Reports said that it will not recommend Apple Inc.'s iPhone 4 due to reception problems caused by the device's antenna design. Apple had earlier said that the reception problems reported about the iPhone 4 actually stemmed from wrong display of the number of bars of signal strength. The company said that it will issue a free software update in a few weeks to fix the problem. However, Consumer Reports said that the main problem appears to be in the design of the device itself.

Among other developments, Apple officially launched its iAd mobile advertising network on July 1 on iPhone and iPod touch devices running iOS 4 software platform. The company stated last month that it has iAd commitments for 2010 totaling over $60 million.
In terms of stock performance, Apple shares have gained over 17% since the beginning of the year. Late in May, Apple reached a major milestone when the company's market capitalization surpassed that of Microsoft for the first time, making it the world's biggest technology company by market capitalization.

Disclosure: Author doesn't own any of the stocks discussed here.



Symbol :


Market news:

  • SKorea's defense chief resigns after NKorea attack Nov 25, 2021 08:01 PM

    • YEONPYEONG ISLAND, South Korea - South Korea's president ordered more troops to a front-line island and dumped his defense minister as the country grappled with lapses in its response to a deadly North Korean artillery strike.
    • The spit of land is just seven miles (11 kilometers) from North Korea, but had only six pieces of artillery.
    • Despite warnings from North Korea that any new provocation would be met with more attacks, Washington and Seoul pushed ahead with plans for military drills starting Sunday involving a nuclear-powered U.S. aircraft carrier in waters south of this week's skirmish.
      • 3 teens rescued after 50 days adrift in S. Pacific Nov 25, 2021 07:55 PM

        • WELLINGTON, New Zealand - Three teenagers survived 50 days adrift in a tiny boat in the South Pacific by drinking rainwater and eating raw fish and a seagull before being rescued by a passing trawler, a senior crewman on the fishing vessel said.
        • The trio - Samuel Pelesa and Filo Filo, both 15, and Edward Nasau, 14 - had been given up for dead on their coral atoll in the Tokelau islands, where a memorial service was held for them after extensive searches failed to find them.
        • Worried family members reported them missing and the New Zealand air force launched a sea search.
          • Merkel, Sarkozy want quick bailout for Ireland Nov 25, 2021 07:23 PM

            • BERLIN - The 16-nation euro currency will survive the debt crisis, German Chancellor Angela Merkel vowed Thursday, and a senior central banker said the European Union would be willing to increase its ?750 billion ($1 trillion) bailout fund if necessary.
            • Axel Weber, the head of Germany's central bank and a leading rate-setter at the European Central Bank, said Thursday that European nations would be willing to boost the emergency fund by as much as ?100 billion ($133 billion) to fully cover the total public debt load of Greece, Ireland, Portugal and Spain.
            • But when Merkel and Sarkozy discussed the eurozone's troubles on the phone Thursday evening they said the ?750 billion emergency fund for the euro would remain unchanged until it expires in 2013, German government spokesman Steffen Seibert said in a statement.
              • More than 600,000 people killed by 2nd-hand smoke Nov 25, 2021 07:14 PM

                • LONDON - Second-hand smoke kills more than 600,000 people worldwide every year, according to a new study.
                • They found 40 percent of children and more than 30 percent of non-smoking men and women regularly breathe in second-hand smoke.
                • Peruga said WHO was particularly concerned about the 165,000 children who die of smoke-related respiratory infections, mostly in Southeast Asia and Africa.
                  • Brady throws 4 TD passes, Patriots top Lions 45-24 Nov 25, 2021 06:02 PM

                    • DETROIT - Tom Brady was perfect on the field and his exit was first class.
                    • Brady threw a season-high four touchdown passes, all in the second half, and the New England Patriots routed the Detroit Lions 45-24 on Thursday after trailing by 11 late in the second quarter.
                    • "We showed some resiliency, coming out in the second half and playing the way we did when the crowd was into it," Brady said.

                      More news


    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
mrbilltraderXXXXX POT$1.15
sam farahanXXXXX TECD$0.95
adfgafg ERTS($0.26)