Apple Reports Record First Quarter Results with 78.3 million units sold in quarter

Apple has announced financial results for its fiscal 2017 first quarter ended December 31, 2016. The Company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36.

These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

Apple saw revenues from its iPhone product rise to $54.4 billion, up from $51.6 billion a year earlier. That revenue growth came as Apple reported units sold rose 5 percent to 78.3 million in its fiscal first quarter of 2017.

That was a record for sales, and also beat analysts expectations by a couple of million. Wall Street forecast iPhone unit sales of 76.3 million in the holiday quarter.

Apple Reports Record First Quarter Results with 78.3 million units sold in quarter

Tim Cook, Apple’s CEO said,

“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,”

“Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”

Luca Maestri, Apple’s CFO added,

“Our outstanding business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow,”

“We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments through our capital return program to over $200 billion.”

For the quarter, Apple reported:

  • iPhone unit sales of 78.3 million, up 5 percent from the previous year. Revenue also rose 5 percent, to $54.4 billion.
  • The iPad continued to lag, with units sold declining 19 percent to 13.1 million and revenue declining 22 percent to $5.5 billion.
  • Mac unit sales of 5.4 billion, up 1 percent from a year ago. However, year-over-year revenue was up 7 percent to $7.2 billion.
  • Sales of “other” products, which include Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories, declined 8 percent year-over-year to $4 billion for the quarter.

Apple is providing the following guidance for its fiscal 2017 second quarter:

  • revenue between $51.5 billion and $53.5 billion
  • gross margin between 38 percent and 39 percent
  • operating expenses between $6.5 billion and $6.6 billion
  • other income/(expense) of $400 million
  • tax rate of 26 percent

Apple’s board of directors has declared a cash dividend of $0.57 per share of the Company’s common stock.  The dividend is payable on February 16, 2017 to shareholders of record as of the close of business on February 13, 2017.