Apple Announces Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2016; Provides Earnings Guidance for the Second Quarter of Fiscal 2017
January 31, 2017 at 09:30 pm
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Apple Inc. announced unaudited consolidated earnings results for the first quarter ended December 31, 2016. For the quarter, the company reported net sales of $78,351 million against $75,872 million a year ago. Operating income was $23,359 million against $24,171 million a year ago. Income before provision for income taxes was $24,180 million against $24,573 million a year ago. Net income was $17,891 million or $3.36 per diluted share against $18,361 million or $3.28 per diluted share a year ago. Cash generated by operating activities was $27,056 million against $27,463 million a year ago. Payments for acquisition of property, plant and equipment was $3,334 million against $3,612 million a year ago. Payments for acquisition of intangible assets were $86 million against $394 million a year ago.
The company provided earnings guidance for its fiscal 2017 second quarter. The company expects revenue between $51.5 billion and $53.5 billion. This guidance range includes a $1.2 billion year-over-year headwind from foreign exchange. The company expects gross margin to be between 38% and 39%. This guidance range includes an 80 basis points sequential headwind from foreign exchange. The company expects OpEx to be between $6.5 billion and $6.6 billion. The company expects OI&E to be about $400 million, and the company expects the tax rate to be about 26%.
Apple Inc. specializes in the design, manufacture and marketing of computer hardware and music supports. Net sales break down by family of products and services as follows:
- telephone products (52.1%): iPhone brand;
- peripheral devices (10.5%): screens, storage systems, printers, video camera, memory cards, server, switches, etc.;
- computers (10.2%): laptops (MacBook, MacBook Air and MacBook Pro brands) and PCs (iMac, Mac mini, Mac Pro and Xserve);
- music support (7.4%): music readers iPod and iPad and accessories;
- other (19.8%): software, maintenance service and Internet access service, etc.
Net sales are distributed geographically as follows: Americas (42.4%), China/Hong Kong/Taiwan (18.9%), Japan (6.3%), Asia/Pacific (7.7%) and Europe/India/Middle East/Africa (24.7%).
Apple Announces Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2016; Provides Earnings Guidance for the Second Quarter of Fiscal 2017