Apple records robust 31% profit growth at $11.1b for fourth quarter
Record fourth quarter sales of the iPhone – 48 million units to be exact – expanded availability of the Apple Watch and all-time records for sales of Macs have pushed Apple’s revenue growth in the fiscal 2015 fourth quarter up by 22 percent to US$51.5 billion.
Posting a quarterly net profit of US$11.1 billion – up 31 percent from 2014 – or US$1.96 per diluted share, this makes Fiscal 2015 Apple’s most successful year ever with a total revenue growth of 28 percent to almost US$234 billion.
Sales outside of the United States accounted for 62 percent of Q4 revenue, with China and Hongkong (or Greater China) remaining the company’s second largest market outside of the Americas. In fact, iPhone shipments in China rose 87 percent from the previous year, Apple CEO Tim Cook told CNBC. At US$12.5 billion, that beats revenue from Europe at US$10.5 billion.
“We see an enormous change in China over the next several years,” Cook said. “We’re reasonably well positioned.” However, he also points to India, Vietnam and Indonesia as potential growth areas.
Although specific numbers weren’t given, Apple Watch sales also beat company expectations. The watch is grouped within a category which includes Beats that posted US$3 billion revenue in the fourth quarter.
While iPad sales have fallen 20 percent from a year ago to US$4.2 billion, Mac sales touched 5.71 million and recorded a revenue of US$6.88 billion, with credit given to the new MacBook and MacBook Pro.
The strong fourth quarter results compare to a revenue of US$42.1 billion and a profit of US$8.5 billion (or US$1.42 per diluted share) in Q4 2014.
“Apple’s record September quarter results drove earnings per share growth of 38 percent and operating cash flow of US$13.5 billion,” said company CFO Luca Maestri.
“We returned US$17 billion to our investors during the quarter through share repurchases and dividends, and we have now completed over US$143 billion of our US$200 billion capital return program.”
In the past Apple has capitalised on low interest rates to borrow billions from investors, which are repaid in dividend payments and stock buybacks.
For this quarter, the company has announced a cash dividend of US$.52 per share of Apple’s common stock will be paid to shareholders on November 12, 2015.
The enviable results, announced on Tuesday, exceeded Wall Street estimates, which had expected earnings of US$1.88 a share and US$$51 billion in revenue from the company. But if Tim Cook is right, new product introductions in the coming months will bolster growth.
“We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV which begins shipping this week,” said Apple’s CEO.
This is expected to help the Cupertino tech giant meet its Fiscal 2016 first quarter targets of revenue between US$75.5 - $77.5 billion, and a gross margin between 39 and 40 percent.
You can listen to a replay of the full Apple Financial Results Conference Call here.
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