Live: Apple Q2 results are in. Shares to be split 7 for 1.

April 23, 2014: 4:00 PM ET

Apple reports earnings of $11.62 per share on sales of $45.6 billion, a Q2 record.

Screen Shot 2014-04-23 at 11.19.16 PMFORTUNE  -- The numbers are in, and they're surprisingly good. Stronger than expected iPhone sales seem to have boosted both the gross margin and the bottom line. iPad sales were a little weak, due largely to channel inventory changes. Mac sales were up and the iPod business, as expected, has pretty much collapsed. Apple press release.

In a separate press release, the company announced a 7 for 1 stock split, effective June 2, something that doesn't change the math but which should make the stock affordable for more investors. The board of directors also increased its share repurchase authorization to $90 billion (from $60 billion) and declared a dividend of $3.29 per common share, an increase of about 8%, payable on May 15. 

The numbers:

  • Revenues: $45.642 billion, up 4.7% year over year
  • Profits: $10.223 billion
  • Earnings per share: $11.62, well above consensus
  • Gross margin: 39.3% (well above guidance)
  • iPhones: 43.719 million units, up 17%, better than expected
  • iPads: 16.35 million, -16% (lower than expected)
  • Macs: 4.136 million, up 5%
  • iPods: 2.761 million, down 51% (as expected)
  • iTunes, Software and Services: $4.573 billion, up 11%
  • Accessories: $1.419 billion, up 3%
  • Revenue guidance for Q3: $36 to $38 billion
  • GM guidance: 37%-38%

"We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Tim Cook. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market."

"We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said outgoing CFO Peter Oppenheimer. "That brings cumulative payments under our capital return program to $66 billion."

Apple's (AAPL) share closed Wednesday at $524.75. They popped more than $40 in after hours trading.

A conference call with analysts is scheduled to begin at 5:00 p.m. ET, 3:00 p.m. PT. Click here: Listen to the Webcast.

Below: the average estimates of 41 analysts in Fortune's poll.

Sales: $43.78 billion
EPS: $10.41
iPhones: 38.25 million units
iPads: 19.35 million
Macs: 4.09 million
iPods: 3.06 million
iTunes, software and services: $4.56 billion
Accessories: $1.40 billion
Gross margin: 37.8%

Below: Notes from the conference call.


  • Dediu: This is the year Apple devices overtake Windows PCs

    At Microsoft's peak, there were 56 times more Windows PCs sold than Macs.

    FORTUNE -- Oranges are being compared with Apples in the attached chart. Or rather, Microsoft (MSFT) Windows PCs with four kinds of Apple (AAPL) devices -- Macs, iPads, iPhones and iPod touches.

    But Asymco's Horace Dediu, who posted it Monday, is bending the rules to make a serious point:

    In the 1980s and 1990s computing platform decisions were made first by companies MORE

    - Jan 13, 2014 1:49 PM ET
  • 5 things to expect from Apple's Oct. 22 event

    New iPads, OS X Mavericks details, and more? Our look at the odds of each being announced.

    FORTUNE -- Apple (AAPL) faithful, get those credit cards ready. On Tuesday, the company is holding an event in downtown San Francisco that will almost certainly mean the unveiling of all-new iPads. But what else will Apple trot out? New Macs? New iPods?

    We won't know for sure until 10 am Pacific/1 pm Eastern tomorrow, but here's MORE

    - Oct 21, 2013 11:30 AM ET
  • Chart: What Apple (& Android) did to the mighty Wintel empire

    As sales of smartphones and tablets grew, the PC market shrank.

    FORTUNE -- The makers of Microsoft (MSFT) Windows computers can take some comfort in the fact that, as CNN Money's Adrian Covert put it Friday, Macs down, PCs up in the third quarter of 2013.

    But take a slightly longer view, as the attached chart does, and things look pretty bleak for the once-mighty Wintel empire.

    Windows PC growth rates have been MORE

    - Oct 11, 2013 10:17 AM ET
  • Why your finger will never replace your mouse

    It's hard to put a finger on what's amiss with the new gesture-based computing peripheral from Leap Motion.

    By John Patrick Pullen

    FORTUNE -- He shot me. After a good eight seconds of flailing, grabbing, and poking at the air above my desk, Frank Welty finally unholstered his sidearm and put me out of my misery. Alas, it was only a game, but I never really stood a chance. My shooter, MORE

    Aug 6, 2013 5:00 AM ET
  • How many Macs did Apple sell last quarter?

    Global PC sales may be in free fall, but most analysts expect the Mac's to be up a bit

    FORTUNE -- For a company like Apple (AAPL) that is supposed to be a growth stock, the flattening bar graph at right might seem like a disappointment -- unless you consider the alternative, represented by the chart at left.

    According to IDC's grim report Thursday, PC sales were down worldwide by 14% year MORE

    - Apr 13, 2013 12:21 PM ET
  • Don't expect to find Macs, iPhones or iPads at Staples

    The tweets that launched a score of news stories may have been premature

    FORTUNE -- The Street's Rocco Pendola was tearing his shoulder-length locks Wednesday morning in a piece titled I'm Worried About Apple. Again. And You Should Be, Too. The thrust of his story: Tim Cook is diluting the precious Apple (AAPL) brand by allowing its products to be sold by retailers associated with, in his word, "mediocrity."

    Pendola mentions BestBuy (BBY), MORE

    - Feb 20, 2013 11:41 AM ET
  • Mac hacker attack reminds us why Steve Jobs hated Java

    The programming platform Oracle inherited from Sun continues to plague Apple

    FORTUNE -- "Java's not worth building in," Steve Jobs told the New York Times' John Markoff in 2007. "Nobody uses Java anymore. It's this big heavyweight ball and chain."

    To Jobs' regret, Java did not disappear. The write-once-run-anywhere programming platform that Sun Microsystems developed and Oracle (ORCL) inherited continues to drag Apple (AAPL) down.

    On Tuesday, with foreign hacker attacks on U.S. MORE

    - Feb 20, 2013 6:30 AM ET
  • Analysts cautious ahead of Apple's earnings release

    Lowered expectations after Tim Cook's Tuesday bombshell

    FORTUNE -- On Monday, Wall Street's consensus for Apple's (AAPL) fourth quarter report -- scheduled to be released today after the markets close -- was for earnings of $8.85 on sales of $36.32 billion.

    By Thursday, according to Thomson Financial, those numbers had dropped to $8.75 and $35.8 billion. And among some of the analysts who revised their estimates this week, expectations were even lower.

    What MORE

    - Oct 25, 2012 7:57 AM ET
  • Why do we still mourn Steve Jobs?

    A scientific explanation of Apple users' unique grief a year after his death.

    By Jennifer Abbasi, contributor

    FORTUNE -- In the weeks following the death of Apple's CEO and co-founder one year ago today, more than a million people sent emails to an address set up by Apple (AAPL). Messages on blogs, Facebook (FB) and Twitter, and even makeshift in-store memorials, demonstrated a collective sadness at the Apple co-founder's passing. And MORE

    Oct 5, 2012 5:00 AM ET
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