On Tuesday, Apple Inc. (NASDAQ:AAPL) announced its quarterly results for Q2 of 2013, noting right at the beginning of the call the $9.5 billion profit off the $43.6 billion in revenue. With this revenue and profit, the per share price comes out to about $10.09 per diluted share as opposed to the $12.30 per diluted share at this time last year. Last year, in Q2 of 2012, AAPL posted a revenue of $39.2 billion and a net quarterly profit of $11.6 billion. The company reported a lower than expected profit for the first time in over a decade.
Apple’s international revenue account for 66% percent, which isn’t surprising when considering how important China and other nations in the region are to Apple’s revenue and profit. The company also noted that gross margin for the quarter was 37.5 percent as opposed to last year’s 47.4 percent. Apple also increased the dividend payments that it pays out to its shareholders up to $3.05 per share, which will be able to be paid out starting May 16. The company currently pays out up to $11 billion per year in dividends to its shareholders.
Apple also has $145 billion in cash and marketable securities for acquisitions of companies. The company has generally used this money to acquire smaller firms and agencies to integrate into the development of a number of their products. The company also has major plans to increase it repurchasing of shares, increasing to $60 billion up from $10 billion. By doing so, the company will ensure that Apple will have an earnings per share increase should they maintain their current profits. The company plans to spend up to $100 billion in cash for its capital return program by the year 2015.
During the second quarter of 2013, Apple sold 37.4 million iPhones, up from 35.1 million from Q2 of 2012, as well as 19.5 million iPads, up from 11.8 a year ago. Apple’s Mac sales were just under 4 million, after a solid 4 million sold last year. Apple’s CEO Tim Cook commented on the quarter:
We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad. Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”
Apple’s CFO, Peter Oppenheimer also commented on the company’s cash balance, adding on to the optimistic comments of CEO Tim Cook.
“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion
Apple, looking ahead to the third fiscal quarter of the year, set a expected revenue of $33.5-35.5 billion and gross margin between 36 and 37 percent. With the company under fire in recent months, over issues with iOS, the late release rumors surrounding the next iPhone and iPad 5, it will be interesting to see how Tim Cook maneuvers the company and its new products to positively affect Apple in the next fiscal quarter.