In March 2003, Apple Inc. was a struggling computer company and today this tech giant is one of the world’s most analyzed companies. Here is what analysts anticipated from Apple’s earnings compared to its actual results.
From sell-side companies like Goldman Sachs, J.P. Morgan and Morgan Stanley, amongst others, analysts predicted Apple’s first quarter revenues to be $56.1 billion with 40% gross margins tied to 30% operating margins and $2.16 EPS (earnings per share).
Slightly higher than expected, Apple (AAPL, +1.09%) reported a 40.8% gross margin. Also on the rise were revenues reported at $58.01 billion, 27% up from $45.65 billion in the same period a year ago which also beating analyst expectations. Apple further reported a $2.33 earnings per share, up from the estimated $2.16 EPS.
From the same sell-side analysts, consensus estimated the sales total of 55 million iPhone units, iPad sales at 14 million units and Mac sales at 4.3 million units. Apple’s guidance looking forward to the next quarter also has sell-side analysts estimating June revenues of $47 billion with a 39% gross margin and 27% operating margins tied with $1.68 EPS.
Apple, however, announced on Monday that the company sold 61.2 million iPhone units, up from the estimated 55 million units, showing a 40% increase from the same period a year ago.
With mounting pressure from Apple shareholders, sell-side analysts expected the company to increase the returns to shareholders through dividends and buy-back programs, above the $150 billion mark from an initial $130 billion.
The company announced a boost in its dividend by 11% on Monday and Apple’s share buy-back program to $140 billion, up by $50 billion. In total, Apple vowed that by March 2017, through dividends and buy-backs, that it would return $200 billion to shareholders.
As a result of these positive earnings, the Apple share price rose to $134.40, up 1.3% in after-hour trade.
MT4 Chart: Apple
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