Apple posted its most profitable quarter with Fiscal Year 2010 Q1, or the quarter ending Dec. 26, 2009. Apple (AAPL) earnings jumped nearly 50 percent year over year.
At the same time, Apple (AAPL) earnings were overshadowed by an event scheduled for Wednesday that has fans and analysts excited. The event, while scheduled in the normal secretive Apple manner, will reportedly introduce a new tablet PC.
Apple said Monday it earned $3.4 billion, or $3.67 per share, in the latest quarter. In the same period in 2008 it earned $2.3 billion, or $2.50 per share. Revenue was $15.7 billion, which was a 32 percent jump from $11.9 billion year over year.
However, the Apple (AAPL) earnings announcement was followed by Apple shares being halted. The reason for that was confusion over how Apple accounts for iPhones now. Apple now puts iPhone revenue and profit on its books when the gadget is sold, rather than deferring those results over the presumed life of the device.
In addition to the iPhone, Apple now accounts for Apple TV when the units are sold. This is called "subscription accounting," by the way. Once the change was clarified, Apple shares halt was lifted, and shares had risen nearly $2.50 in after hours trading at the time of this writing.
While the accounting change helped Apple double sales figures for the iPhone, but sales figures were also helped by new markets. The new markets include China and South Korea. Apple CFO Peter Oppenheimer told a post-report conference call, "Were thrilled to report our best quarter ever."
The company sold 3.4 million Mac computers last quarter, a 33% increase. However, iPod sales were soft, as was expected. The 21 million iPods it sold marked an 8 percent decline.
The forecast for the current quarter, Q2 of Fiscal Year 2010, topped analysts estimates as well. Apple said it expects the current quarter to yield earnings of $2.06 to $2.18 per share, with revenue of $11.0 billion to $11.4 billion. Analysts had been predicting earnings of $1.77 per share and revenue of $10.4 billion in the current quarter, according to Thomson Reuters.
Written by Michael Santo
HULIQ.com
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