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Apple (AAPL) Tops Q3 EPS by 4c

July 21, 2015 4:30 PM

(Updated - July 21, 2015 4:33 PM EDT)

Apple (NASDAQ: AAPL) reported Q3 EPS of $1.85, $0.04 better than the analyst estimate of $1.81. Revenue for the quarter came in at $49.6 billion versus the consensus estimate of $49.31 billion.

Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter.

International sales accounted for 64 percent of the quarter’s revenue.

iPhone units were 47.53 million versus the consensus of 48-49 million. Other units, including Watch were 2.64 million versus the consensus of about 3 million for Watch.

We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”

Apple is providing the following guidance for its fiscal 2015 fourth quarter:

• revenue between $49 billion and $51 billion (consensus is $51.05 billion)

• gross margin between 38.5 percent and 39.5 percent

• operating expenses between $5.85 billion and $5.95 billion

• other income/(expense) of $400 million

• tax rate of 26.3 percent

For earnings history and earnings-related data on Apple (AAPL) click here.

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