BEIJING, Oct. 31 (NASDAQ: AAPL) today released its fourth-quarter results for fiscal 2019 for the year ended September 28. Apple’s fourth-quarter net sales were $64.040 billion, up 2 percent from $62.90 billion a year earlier, and net profit was $13.686 billion, down 3 percent from $14.125 billion a year earlier, the company said.
Apple’s fourth-quarter revenue and diluted earnings per share both beat consensus expectations, pushing its shares up nearly 2 percent in after-hours trading.
Stock price performance:
Apple shares up 1.88% after the session
Apple opened at $244.76 on the Nasdaq on Wednesday. Apple shares were down $0.03, or 0.01 percent, at $243.26 by Wednesday’s close. Apple shares were up $4.58, or 1.88 percent, at $247.84 in after-hours trading at 17:26 A.m. EST (5:26 p.m. EST on Thursday). Apple’s shares have risen to $249.75 and as low as $142.00 for the past 52 weeks.
Q4 Earnings Highlights:
Total net sales were $64,040 million, up 2% from $62.90 billion a year earlier;
Net sales of products were $51.529 billion, down 1% from $52.301 billion a year earlier;
Net service sales were $12.511 billion, up 18% from $10.599 billion a year earlier;
Gross profit was $24.313 billion, up 1% from $24.084 billion a year earlier;
Total operating expenses were $8.688 billion, up 9% from $7.966 billion a year earlier;
Research and development costs were US$4.110 billion, up 10% from US$3.75 billion a year earlier;
Sales, general services and administrative expenses were $4,578 million, up 9% from $4.216 billion a year earlier;
Operating profit was $15.625 billion, down 3% from $16.118 billion a year earlier;
Net profit was $13.686 billion, down 3% from $14.125 billion a year earlier.
Diluted earnings per share were $3.03, up 4% from $2.91 a year earlier;
– 60% of revenue from international sales;
As of September 28, 2019, Apple held $205.9 billion in cash reserves, down 2% from $210.6 billion at the end of the previous quarter.
Net sales for the fourth quarter of the iPhone business were $33.362 billion, down 9% from $36.755 billion a year earlier.
– Net sales in the fourth quarter of Mac’s business were $6.991 billion, down 5% from $7.34 billion a year earlier.
Net sales for the fourth quarter of the iPad business were $4.656 billion, up 17% from $3.983 billion a year earlier.
– Net sales of the wearables, home and accessories business for the fourth quarter were $6.520 billion, up 54% from $4.223 billion a year earlier;
– Net sales in the fourth quarter of the services business were $12.511 billion, up 18% from $10.599 billion a year earlier.
– Net sales in the fourth quarter of the Americas were $29.322 billion, up 7% from $27.517 billion a year earlier;
– Europe’s fourth-quarter net sales were $14.946 billion, down 3% from $15.382 billion a year earlier;
– Greater China’s fourth-quarter net sales were $11.134 billion, down 2% from $11.411 billion a year earlier;
– Japan’s fourth-quarter net sales were $4.982 billion, down 3% from $5.161 billion a year earlier.
– The rest of the Asia-Pacific region reported fourth-quarter net sales of $3.656 billion, up 7% from $3.429 billion a year earlier.
Q2020 Q1 Outlook:
Revenue sits between $85.5 billion and $89.5 billion;
– Gross margin is between 37.5% and 38.5%;
Operating expenses range from $9.6 billion to $9.8 billion;
– Other income (expenses) was $200 million;
The tax rate is about 16.5%.
Capital Return Plan:
Apple’s Board of Directors announced that it will pay a cash dividend of $0.77 per common share to common shareholders registered at the close of the stock market as of November 11, 2019, with a payment date of November 14, 2019.
Tim Cook, Apple CEO, said: “We ended our groundbreaking fiscal 2019 with the highest fourth-quarter revenue in history, driven by accelerated growth in services, wearables and iPad. Given the appreciation of customers and reviewers for the next generation of iPhones, the release of the new noise-cancelling headset, the much-anticipated Apple TV Plus, which will be available in two days, and our strongest line-up of products and services in history, we’re looking forward to the upcoming holiday season. ”
“The strong performance of our business drove a record diluted earnings per share to a record $3.03 in the fourth quarter and a record operating cash flow of $19.9 billion,” said Luca Maestri, Apple’s CFO. As we continue to move toward spending net cash neutrality, we have also returned more than $21 billion to shareholders, including nearly $18 billion in share buybacks and $3.5 billion in dividends and equivalents. “