Apple Posts Another Record Q Amidst Dire Rumors
July 22, 2008 at 4:57 PM (PT)
Oversized expectations and lingering whispers about CEO STEVE JOBS' health drove APPLE stock down in spite of record 3Q earnings. APPLE posted 38% revenue growth and 31% growth in its third-quarter earnings, for a net quarterly profit of $1.07 billion, or $1.19 per diluted share.
"We're proud to report the best JUNE quarter for both revenue and earnings in APPLE's history," JOBS said. "We set a new record for Mac sales, we think we have a real winner with our new iPHONE 3G, and we're busy finishing several more wonderful new products to launch in the coming months."
The new iPHONE, with all its radio applications, was not a factor in 3Q, yet APPLE broke records on still buoyant iPOD sales (approx. 11 million in 3Q alone) and record MAC sales. The only thing that didn't exceed WALL STREET expectations was sales of the original iPHONE, where APPLE couldn't keep up the demand and they only met expectations. (See here for details.)
Yet recession-impacted soft 4Q projections and lingering questions about STEVE JOBS' health did a number on APPLE's stock price. There have been printed speculation about JOBS' past issues with pancreatic cancer. End result: At the end of the day (7/22), APPLE's stock fell 4.27 to 162.02, a 2.57% drop. However, with the strong out-of-the-box performance on the new iPHONE, which will positively impact 4Q, APPLE could surprise WALL STREET pundits yet gain.