Apple announces record first quarter financial results

Maybe Apple’s not doomed, after all. The company has announced financial results for its fiscal 2016 first quarter that ended Dec. 26, 2015. Apple posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. 

Apple sold 74.8 million iPhones in the first quarter of fiscal 2016. Mac sales for the quarter reached 5.3 million units (down 4% year-over-year). iPad sales were 16.1 million (a 25% decrease year-over-year).

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said CEO Tim Cook in a press release. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

The latest financial results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1% compared to 39.9% in the year-ago quarter. International sales accounted for 66% of the quarter’s revenue.

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Chief Financial Officer Luca Maestri. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”

  • Apple is providing the following guidance for its fiscal 2016 second quarter:
  • Revenue between $50 billion and $53 billion;
  • Gross margin between 39% and 39.5%;
  • Operating expenses between $6 billion and $6.1 billion;
  • Other income/(expense) of $325 million;
  • A tax rate of 25.5%.

Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on Feb. 11 to shareholders of record as of the close of business on Feb. 8.