Apple reported record results for its fiscal Q1 2016 earnings on Tuesday, showing revenue of $75.9 billion and $18.4 billion in profit, ($3.28 per diluted share), for the October to December three month period. The company sold 74.8 million iPhones, 16.1 million iPads, and 5.3 million Macs during the period. As is usual, Apple did not announce the numbers for Apple Watch or Apple TV sales.
Apple’s results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1% compared to 39.9% in the year-ago quarter. International sales accounted for 66% of the quarter’s revenue.
“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”
“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Luca Maestri, Apple’s CFO. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”
Apple is providing the following guidance for its fiscal 2016 second quarter:
- Revenue between $50 billion and $53 billion
- Gross margin between 39 percent and 39.5 percent
- Operating expenses between $6 billion and $6.1 billion
- Other income/(expense) of $325 million
- Tax rate of 25.5 percent
Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on February 11, 2016, to shareholders of record as of the close of business on February 8, 2016.
Apple will provide live streaming of its Q1 2016 financial results conference call beginning at 2:00 p.m. PST on January 26, 2016 at www.apple.com/investor/earnings-call/. We’ll report the highlights of the call soon after it is over.
