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Apple’s Q3 2012 Earnings: $8.8 billion profit on $35 billion revenue

Apple has just announced their Q3 2012 Earnings, posting numbers slightly below those expected by analysts.

The company managed to rake in a quarterly revenue of $35 billion and a quarterly net profit of $8.8 billion. That works out to $9.32 per diluted share, quite a bit lower than Wall Street’s estimated $10.38 per share. These numbers do, however, represent significant growth over the same quarter last year, in which Apple posted quarterly revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share. Gross margin also increased to 42.8 percent, up from 41.7 percent in Q3 2011.

Apple sold 26 million iPhones this quarter, representing 28 percent unit growth, despite increasing consumer demand for a new model. The company also posted record iPad sales for the quarter, selling 17 million units, an 84 percent increase over last year. Mac sales also rose 2 percent to 4 million units, while Apple’s dwindling iPod business is down 10 percent, selling 6.8 million units for the quarter.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” CEO Tim Cook said in a press release. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

As previously announced, Apple’s Board of Directors declared a $2.65 cash dividend for the quarter, payable on August 16, 2012. Stockholders of record as of the close of business on August 13, 2012 are eligible to receive the dividend. In the press release, CFO Peter Oppenheimer provided a quick outlook for Q4, stating, “Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65.”

Apple’s Earnings Call will take place in less than half an hour, at 5 PM EST. We already know that more details about the company’s recently announced dividend and stock buyback programs will be discussed, but these calls usually yield some other interesting tidbits as well. We’ll update this post if any interesting news or comments come out of the call!

Live Earnings Call Updates

5:59 PM EST: On controlling iPhone rumours and speculation, Tim: “I’m glad that people want the next thing. I’m not going to put any energy into getting people to stop speculating. I don’t think that is going to result in anything.”

5:50 PM EST: Question regarding Passbook possibly leading to Apple’s digital wallet. Tim: “I don’t want to comment specifically, but Passbook is an important feature of iOS 6. Wouldn’t want to speculate about where it might take us.”

5:47 PM EST: 1.3 million AppleTV units sold in Q3. Over 4 million units total for fiscal 2012. Tim: “still at a level where we’d call it a hobby”.

5:43 PM EST: Tim: New iPad was top seller, but iPad 2 did very well. Key in getting the K-12 market. Customers are “not looking for a tablet, they’re looking for an iPad”.

5:37 PM EST: Lots of talk about poor world economies and dollar strength impacting sales.

5:35 PM EST: Tim says carriers will be very motivated to carry Apple’s future products. No kidding.

5:32 PM EST: Tim: we expect to catch up with demand for Retina MacBook Pro next month (August). Attributes some decline in sales to “timing” of portable announcements; MacBook line was refreshed with less than 3 weeks remaining in quarter.

5:30 PM EST: Tim is aware of the “incredible anticipation” for new products. Peter says the “fall transition” may be hurting sales of current devices. Oppenheimer: “We could not be more confident in our product pipeline.” (9to5Mac)

5:25 PM EST: Tim says iPhone did not “perform” as expected in Europe. Single digit positive growth in many countries.

5:23 PM EST: Peter just acknowledged that “rumours and speculation” are impacting iPhone sales. iPhone not launching in any new countries or on any new carriers in September quarter.

5:17 PM EST: Oppenheimer says “more amazing products in the pipeline” that Apple will discuss later. So coy!

5:13 PM EST: Apple Stores raked in $4.1 billion in revenue this quarter. Average of $11.1 million per store.

5:12 PM EST: Oppenheimer says Apple has payed over $5.5 billion to App Developers. Over 150 million customers using iCloud.

5:09 PM EST: CFO Peter Oppenheimer noted that, though demand for the new iPad was strong, the reduced price iPad 2 sold very well.

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