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Apple’s 4th Quarter Earnings Disappoint

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Apple logo, iPhone4 (AP)

CUPERTINO (CBS SF) – Apple Inc. failed to set a new sales record in the last three months of founder and CEO Steve Jobs’ life. Its financial results came in below expectations on Tuesday – a rare miss for the company.

After several record quarters, the July-to-September period saw Apple biding its time, with no new iPhone or iPad releases.

Net income in the fiscal fourth quarter was $6.62 billion, or $7.05 per share. That was up 54 percent from $4.31 billion, or $4.64 per share, a year ago.

Analysts polled by FactSet were expecting earnings of $7.28 per share.

Revenue was $28.3 billion, up 39 percent. Analysts were expecting $29.4 billion.

Apple sold 17.1 million iPhones in the quarter, which ended Sept. 24. That was well below analyst expectations and the 20.3 million sold in the third quarter.

IPhone buyers had been holding off and waiting for the new model that was launched last week, after the end of the quarter. Still, analysts expected the older models to keep much of their appeal.

Apple’s forecast for the current quarter was more pleasing to investors. It said it expects earnings of $9.30 per share and revenue of $37 billion. Apple usually low-balls its forecasts, and analyst figures are usually higher. But in this case, analysts have had lower figures, expecting earnings of $9 per share and revenue of $36.7 billion.

Jobs relinquished his position as CEO in August, after going on medical leave in January. He died Oct. 5 after years of battling pancreatic cancer.

Apple’s stock was down $24.33, or 5.8 percent, at $397.91 in afterhours trading, losing one week of gains.

 

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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