Apple 4Q net income soars 70 pct; iPad falls short

SEATTLE (AP) — Apple Inc. said Monday that net income for the most recent quarter soared 70 percent on strong sales of iPhones, though iPad sales fell short of expectations.

Shares fell in after-hours trading. Apple’s stock had been breaking through record-high prices for more than a week on high hopes for the iPad.

Apple sold 4.2 million of its new tablet-style computer during the fiscal fourth quarter, fewer than the approximately 5 million that analysts, on average, had expected.

The company sold 14.1 million iPhones from July through September, more than the 12 million or so analysts were looking for. Apple Chief Financial Officer Peter Oppenheimer said in an interview that had the company been able to make more iPhones, that number would have been even higher.

Sales of the iPad might have been constrained by supply issues. Oppenheimer said the company was able to increase production of the iPad toward the end of the quarter.

Apple’s net income rose to $4.3 billion, or $4.64 per share, from $2.5 billion, or $2.77 per share, in the same period last year.

Revenue jumped 67 percent to $20.3 billion from $12.2 billion last year.

Both revenue and net income were record amounts for Apple. The company also did significantly better than Wall Street analysts expected. Analysts polled by Thomson Reuters expect Apple to earn $4.08 per share on $18.9 billion in revenue.

“When you’re shipping the best products ever, these are the results you expect to see,” Oppenheimer said.

Apple said it expects to earn $4.80 per share during the holiday quarter on $23 billion in revenue. Apple is known for issuing low guidance and then sailing over. Analysts are currently looking for $5.06 per share in net income on $22.3 billion in revenue.

Shares of Apple, which is based on Cupertino, Calif., plunged $20.69, or 6.5 percent, to $297.31 in extended trading after the release of results. In the regular session earlier, the stock rose $3.25, or 1 percent, to $317.99.

For the full fiscal year, Apple’s net income jumped 70 percent to $14 billion, or $15.15 per share, from $8.2 billion or $9.08 per share.

Revenue jumped 52 percent to $65.2 billion from $42.9 billion.

The Associated Press