Apple has just released the financial results for its fiscal first quarter 2019, completed on December 29, 2018.
The numbers were highly anticipated, since earlier this month Tim Cook sent a letter to investors making the first negative review of the company's revenue expectations in about 15 years. When Apple released results for the fourth fiscal quarter of 2018, Apple predicted revenue of $ 89-93 billion in its review, Cook lowered the expectation to $ 84 billion.
Said and done: Apple's quarterly revenue was exactly at $ 84.3 billion (5% less than in the first fiscal quarter of 2018), with a net profit of $ 20 billion (decrease of 0.5%) and diluted earnings of $ 4.18 (growth of 7.5%). International sales comprised 62% of all sales in the period.
As the $ AAPL has already recovered the whole blow after Cook's letter, Wall Street is expected to no longer react negatively to the figures released today.
One thing that changes, from this results release, is that Apple unfortunately does not detail sales of iPhones, iPads and Macs by units. The iPhone recipe fell 15% compared to last year, but the revenue from all products and services grew 19%.
Apple revealed that its Services reached a new historical record of $ 10.9 billion in revenue, 19% more than in the first fiscal quarter of 2018. Revenues from Macs and Wearables, Home and Accessories also broke historical records, growing 9% and 33%, respectively, while revenue from iPads rose 17%.
Here is the statement by the executive director (CEO) Tim Cook:
While it was disappointing to miss our revenue expectations, we manage Apple in the long run, and this quarter's results demonstrate that the essential strength of our deep and broad business. Our installed base of active devices reached a historic high of 1.4 billion in the first quarter, growing in each of our geographic segments. This is a great testament to the satisfaction and loyalty of our consumers, and is pushing our Services business to new records thanks to our large and rapidly growing ecosystem.
And that of the CFO Luca Maestri:
We generated a very strong operating cash flow of $ 26.7 billion during the December quarter and recorded a new historical record of diluted earnings per share of $ 4.18. We returned over US $ 13 billion to our investors during the quarter through dividends and share buybacks. Our net cash balance was US $ 130 billion at the end of the quarter, and we continue to target a neutral net cash position over time.
Looking forward to the fiscal second quarter 2019, Apple predicts revenue of $ 55-59 billion, gross margin between 37% and 38%, operating expenses between $ 8.5 and $ 8.6 billion, other revenue / (expenses) of $ 300 million and a fee of taxes of approximately 17%.
Apple's board of directors declared a cash dividend of $ 0.73 per share of the company, payable on February 14, 2019 to all shareholders registered at the end of business on February 11, 2019.
In a little while, starting at 8 pm (for the summer time in Brasilia), Apple will hold an audio conference to talk about these numbers and answer questions from the press. Afterwards, we will do a complete coverage with the highlights of what to roll over here in .
Update Jan 29, 2019 at 7:50 pm
As predicted, $ AAPL was no longer negatively impacted by the numbers. Quite the contrary: in the NASDAQ post-close trading session, it is now skyrocketing by almost 4%.
Wall Street liked it.