Apple Shocks With Big Miss on Earnings
Here's a headline you don't see every day.
At the close of trading on Wall Street today, Apple announced quarterly earnings for its 2011 fiscal fourth quarter, which ended September 25th and does not take into account revenues gained from the iPhone 4S launch earlier this month.
In a development that comes as a substantial shocker to some, Apple fell substantially short of analyst estimates today. Analysts had pegged Apple at earning $7.39 per share on revenue on $29.69 billion. Instead, Apple earnings came in at $7.05 per diluted share on revenue of $28.3 billion.
Today - the first quarterly earnings report since Steve Jobs' departure as CEO and subsequent passing - marked the first earnings miss for Apple since 2004, a full three years before the first iPhone was introduced. In after-hours trading, shares of Apple (AAPL) initially fell more than $20 (or better than 7%).
Despite the sell-off (which will likely be short-lived), Apple still saw its earnings grow substantially over the same quarter last year. And as long as the company keeps raking in the cash, it shouldn't have too many pressing concerns.
For the quarter, Apple sold 17.07 million iPhones, 11.2 million iPads, and 4.89 million Macs.
“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s new CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”