Company Update (NASDAQ:AAPL): Apple Inc. Reports Record Second Quarter Results

Apple Inc. (NASDAQ:AAPL) announced financial results for its fiscal 2015 second quarter ended March 28, 2015. The Company posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion, or $2.33 per diluted share. These results compare to revenue of $45.6 billion and net profit of $10.2 billion, or $1.66 per diluted share, in the year-ago quarter. Gross margin was 40.8 percent compared to 39.3 percent in the year-ago quarter. International sales accounted for 69 percent of the quarter’s revenue.

The growth was fueled by record second quarter sales of iPhone® and Mac® and all-time record performance of the App Store℠.

“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Tim Cook, Apple’s CEO. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

“The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27 percent and EPS growth of 40 percent,” said Luca Maestri, Apple’s CFO. “Cash flow from operations was also outstanding at $19.1 billion.”

Apple is providing the following guidance for its fiscal 2015 third quarter:

  • revenue between $46 billion and $48 billion
  • gross margin between 38.5 percent and 39.5 percent
  • operating expenses between $5.65 billion and $5.75 billion
  • other income/(expense) of $350 million
  • tax rate of 26.3 percent (Original Source)

Shares of Apple closed today at $132.65, up $2.37 or 1.82%. The stock’s 50-day moving average is $126.10 and its 200-day moving average is $116.52.

On the ratings front, Apple has been the subject of a number of recent research reports. In a report released today, Jefferies Co. analyst Sundeep Bajikar maintained a Hold rating on AAPL, with a price target of $135, which represents a slight upside potential from current levels. Separately, Piper Jaffray’s Gene Munster reiterated a Buy rating on the stock today, with price target of $160.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Sundeep Bajikar and Gene Munster have a total average return of 28.1% and 28.8% respectively. Bajikar has a success rate of 72.9% and is ranked #66 out of 3581 analysts, while Munster has a success rate of 73.5% and is ranked #1.

In total, one research analyst has rated the stock with a Sell rating, 12 research analysts have assigned a Hold rating and 32 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $132.65 which is 7.8% above where the stock opened today.

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