Apple shares tank after hours despite strong Q3
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Apple’s stock got hammered after hours despite a strong quarter and significant growth in Mac computer sales. The company today announced financial results for its fiscal 2008 third quarter ended June 28, 2008. The Company posted revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share. Revenues and EPS grew 38% and 29% compared to the same quarter a year ago. Gross margin was 34.8 percent, down from 36.9 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter’s revenue.
- Apple shipped 2,496,000 Macintosh® computers during the quarter, representing 41 percent unit growth and 43 percent revenue growth over the year-ago quarter.
- The Company sold 11,011,000 iPods during the quarter, representing 12 percent unit growth and seven percent revenue growth over the year-ago quarter.
- Quarterly iPhone™ units sold were 717,000 compared to 270,000 in the year-ago-quarter.
“We’re proud to report the best June quarter for both revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we’re busy finishing several more wonderful new products to launch in the coming months.”
The company issued a forward looking statement for Q4 and expects revenue of about $7.8 billion and earnings per diluted share of about $1.00. This was below market expectations of $8.3 billion in revenues and shares were down $16.59 or 9.98% in after hours.
Investors and analysts have been concerned over Steve Jobs’ health as well. In mid-2004, Jobs announced to his employees that he had been diagnosed with a malignant tumor in his pancreas. Rumors about his health issues have surfaced in the recent times. Apple’s fortunes have been synonymous with Jobs at the helm and any perceived threat to his involvement with Apple tends to panic shareholders who are unable to contemplate anyone else leading Apple.
