Apple has a juicy fourth quarter

first_imgSAN JOSE – Apple Inc.’s fiscal fourth-quarter profits jumped 67percent and easily beat Wall Street expectations, capping a record-breaking year that saw unprecedented momentum in its Mac business, ceaseless consumer interest in its iPod players and a successful introduction of its newest endeavor, the iPhone. For the three months that ended Sept. 30, Apple said Monday, it earned $904million, or $1.01 per share, compared with $542million, or 62cents per share, in the year-ago quarter. Revenue totaled $6.22billion, compared with $4.84billion in the same quarter last year. Analysts polled by Thomson Financial were expecting earnings of 86cents per share on sales of $6.07billion. Apple’s fortunes have skyrocketed in recent years as its iPods became a cultural phenomenon. The portable players, which work on Macs as well as Microsoft Corp. Windows-based machines, have also drawn more people to Apple’s software and design, leading to what analysts call a “halo effect” on Mac sales. After hovering for years with a 2percent to 3percent share of the PC market in the United States, Apple’s slice has now grown to 8percent, according to the latest figures from market researcher Gartner Inc. Now, many investors are betting Apple’s foray in the cell-phone market will be another lucrative engine. The iPhone, a combination cell phone, iPod and multimedia Web device, “is a game-changing product,” said Stephen Coleman, chief investment officer at Daedalus Capital LLC. Based on income from the iPhone alone, “I expect Apple’s earnings to continually grow materially at 50percent a year, for the next three years,” Coleman said. For the current quarter, Apple said, it expects earnings of about $1.42 per share on revenue of about $9.2billion. Analysts on average had been expecting earnings of $1.39 per share on sales of $8.58billion. “We’re looking forward to a strong December quarter as we enter the holiday season with Apple’s best products ever,” said Steve Jobs, Apple’s CEO.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREGame Center: Chargers at Kansas City Chiefs, Sunday, 10 a.m.Apple’s stock price, which has more than doubled since January, rose $3.94, or 2.3percent, to close at $174.36. After the earnings report, shares climbed $9.50, more than 5percent, in extended trading. Apple said it shipped a record 2.16million Macs in the quarter, an increase of 34percent, while it sold 10.2million iPods, up 17percent. In the first full quarter of iPhone sales – a number many on Wall Street were waiting for – Apple said it sold 1.12million units, bringing the cumulative total to 1.39million since the product debuted June 29. For the full fiscal year, Apple earned a record $3.5billion, up more than 75percent from last year when it earned $1.99billion. Yearly sales reached more than $24billion, a 24percent jump from fiscal 2006. “We had a fantastic quarter and year,” said Peter Oppenheimer, Apple’s chief financial officer. last_img read more