Apple Q3 earnings: beats on profit, revenue; sales mixed

Third quarter sales of iPads and Macs fell short. The iPhone? A surprise blowout. Here's a look at the numbers.

Apple on Tuesday reported earnings of $7.47 on revenue of $35.3 billion for the third quarter ended June 29.

Analysts were expecting earnings of between $7.31 and $7.34 on revenue of between $35.02 billion to $35.18 billion, roughly on par, in terms of revenue, with the company's performance during the same period a year ago . Apple's own guidance specified quarterly revenue of $34.5 billion.

The company's stock (AAPL) was up more than five percent, to $441, in after-hours trading.

Looking ahead to the fourth quarter, the company offered a rather light outlook: revenue of $34 billion to $37 billion. Expectation was about $37 billion.

Apple said it 31.2 million iPhones, 14.6 million iPads and 3.8 million Macs during the third quarter. Analysts expected the company to sell 26 million iPhones, 18.3 million iPads and 3.9 million Macs.

The company's gross margin dropped, from 42.8 percent in 3Q12 to 36.9 percent this quarter.

Additionally:

  • Quarterly net profit came to $6.9 billion.
  • Quarterly cash flow came to $7.8 billion.
  • International sales accounted for 57 percent of the quarter's revenue.
  • Apple's board declared a cash dividend of $3.05 per share of common stock, payable on August 15.
apple-earnings-3q13-chart02

With no new product releases, Apple's year to date has been unusually quiet, and Wall Street expectations were rather restrained—flat revenue and sales at best—as demand for the company's products slows. (As Erica Ogg notes at GigaOm, Apple's peers Samsung, Intel, Microsoft and Google all ended the quarter with ho-hum financial results.) 

We sat in on Apple's conference call to find out more detail— here's what the company's executives said .

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