Apple's Profit Climbs 54%

Apple's Profit Climbs 54%

Apple Inc.'s fiscal fourth-quarter earnings rose 54% on continued strong sales of the iPhone and iPad.

However, the company's shares fell 5% in recent after-hours trading to $401.34, as results missed analysts' expectations.

The company's iPhone, the latest version of which was released last week, has continued to be a key driver of growth. In the latest quarter, the company sold 17.1 million units of the iPhone, a 21% increase from the prior year's total. The company recorded more than four million sales of the new iPhone 4S in its first three days of availability, a record for Apple and a strong start for the device as competition continues to heat up. In the U.S., Apple added new carrier partner Sprint Nextel Corp.

The maker of computers and electronics devices, known for traditionally giving conservative guidance, said it expects fiscal first-quarter earnings of about $9.30 a share on revenue of about $37 billion. Analysts surveyed by Thomson Reuters expected a profit of $9.01 a share on $36.72 billion in revenue.

For the quarter ended Sept. 24, Apple reported earnings of $6.62 billion, or $7.05 a share, up from $4.31 billion, or $4.64 a share, a year earlier. Revenue increased 39% to $28.27 billion, with 63% of the top line coming from international sales.

In July, the company projected earnings of $5.50 a share on revenue of about $25 billion. Wall Street's latest expectations were $7.39 and nearly $29.69 billion, respectively.

Gross margin widened to 40.3% from 36.9%.

Apple sold 11.1 million iPad units in the latest quarter, nearly triple what it sold a year ago. The company sold 4.9 million Macintosh computers, up 26% from a year earlier.

It also sold 6.6 million iPod media players, a 27% decline. Sales have slowed for the iPod, although the unit has likely benefited from higher average selling prices, as more consumers gravitate toward the iPod Touch.

The company's founder and former chief executive Steve Jobs died earlier this month after a long battle with pancreatic cancer. Under Mr. Jobs's direction, Apple grew to become one of the world's most powerful technology companies through breakthrough hits like the iPod, iPhone and iPad. Mr. Jobs had resigned as chief executive of the company in August.

The stock hit an all-time high of $426.70 on Monday.

source: wsj.com