Summary
Apple Inc.'s Form 10-Q filing for the period ending December 29, 2017, showcases a strong financial performance, demonstrating robust revenue growth and profitability. The company reported significant increases in net sales and net income compared to the prior year's quarter, driven by strong performance across its product lines, particularly the iPhone, and a burgeoning Services segment. This quarter also saw Apple begin shipping the highly anticipated iPhone X, contributing to higher average selling prices. Key financial highlights include a substantial increase in gross profit and operating income, underscoring effective cost management and strong product demand. Apple continued its aggressive capital return program, repurchasing a significant amount of its stock and declaring dividends, demonstrating its commitment to shareholder value. The company's liquidity remains strong, with substantial cash and marketable securities, providing ample resources for operations, investments, and capital returns. Investors should note the impact of the Tax Cuts and Jobs Act, which introduced new tax considerations including a provisional estimate for a deemed repatriation tax.
Financial Highlights
56 data points| Revenue | $88.29B |
| Cost of Revenue | $54.38B |
| Gross Profit | $33.91B |
| R&D Expenses | $3.41B |
| SG&A Expenses | $4.23B |
| Operating Expenses | $7.64B |
| Operating Income | $26.27B |
| Interest Expense | $734.00M |
| Net Income | $20.07B |
| EPS (Basic) | $0.98 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 20.45B |
| Shares Outstanding (Diluted) | 20.63B |
Key Highlights
- 1Net sales increased by 13% to $88.3 billion for the quarter ended December 30, 2017, compared to $78.4 billion in the prior year period.
- 2Diluted earnings per share (EPS) rose to $3.89 from $3.36 in the comparable prior year quarter.
- 3Gross margin remained strong at 38.4%, with gross profit increasing to $33.9 billion from $30.2 billion year-over-year.
- 4Operating income saw a significant increase of 12.5% to $26.3 billion compared to $23.4 billion in the prior year period.
- 5The Services segment revenue grew by 18% to $8.5 billion, indicating continued expansion in this high-margin area.
- 6Apple returned $10.1 billion to shareholders through share repurchases and $3.3 billion in dividends and dividend equivalents during the quarter.
- 7The company held $27.5 billion in cash and cash equivalents and $49.7 billion in short-term marketable securities, with total assets reaching $406.8 billion.