Apple on Tuesday disclosed its [fiscal] Q1 2019 earnings report, offering a look at its performance over the past 3 months. During the holiday period, the company says it pulled in $84.3B in revenue, a decline of 5% from the year-ago quarter.
Earlier this month, Apple announced that it was forced to reduce its forecast of $89B-$93B down to $84 billion due to fewer-than-expected iPhone sales. The company’s stock took a massive hit, but it has since recouped most of its losses.
Here are some comments from Tim Cook and CFO Luca Maestri:
“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Tim Cook, Apple’s CEO. “Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”
“We generated very strong operating cash flow of $26.7 billion during the December quarter and set an all-time EPS record of $4.18,” said Luca Maestri, Apple’s CFO. “We returned over $13 billion to our investors during the quarter through dividends and share repurchases. Our net cash balance was $130 billion at the end of the quarter, and we continue to target a net cash neutral position over time.”
Apple has of course said that it will no longer be reporting iPhone sales numbers, but they do provide some stats worth noting:
- Quarterly earnings per diluted share of $4.18, up 7.5% YoY
- International sales accounted for 62% of the quarter’s revenue
- Revenue from iPhone declined 15% YoY
- Total revenue from other products and services grew 19% YoY
- Services revenue reached all-time high of $10.9B
And the company is providing the following guidance for its fiscal Q2 2019:
- revenue between $55 billion and $59 billion
- gross margin between 37 percent and 38 percent
- operating expenses between $8.5 billion and $8.6 billion
- other income/expense of $300 million
- tax rate of approximately 17%
At the time of publishing, Apple’s stock was up nearly 4% in after-hours trading. The company’s conference call should be starting shortly, so make sure you check back for more numbers and tidbits from the holiday quarter.