Apple Pleases All, Sans-Guidance (AAPL)

Apple Inc. (NASDAQ: AAPL) is out with earnings, and there are some surprises here.  Steve Jobs and friends reported earnings of $3.33 EPS and $13.5 billion in revenues.  Thomson Reuters had estimates at $2.45 EPS on revenues of $12.04 billion, but the company’s own guidance from last earnings on January 25, 2010 was as follows: revenue in the range of about $11.0 billion to $11.4 billion; earnings of $2.06 to $2.18 EPS.

Gross margin was 41.7%, above the 39.9% in the year-ago quarter; its international sales accounted for 58% of the quarter’s revenue.

For the quarter ahead, the company’s guidance is $2.28 to $2.39 EPS on $13.0 to $13.4 billion; Thomson Reuters consensus is $2.70 EPS on $12.96 billion in revenues.

As far as our checks around, we were looking for 7 million iPhones sold and Mac computer sales should be just under 2.7 million units.  iPod (and iTouch unit) sales were expected to be the drag here with sales of maybe even under 9 million units.  It blew out these estimates, even on the old iPod:

• 2.94 million Macs, up 33% from a year ago;
• 8.75 million iPhones, up 131% from a year ago;
• 10.89 million iPods, down 1% from a year ago.

Shares closed down 1% at $244.59 and the 52-week trading range is $118.60 to $251.14.  Shares are halted and we are awaiting a resumption.  This was a total blowout, even for skeptics.  The guidance is soft, but that has been the case with regularity so that it can under-promise and over-deliver.

Updated price at 5:02 PM EST: Apple shares are now up at above $260.00, although the immediate highs after the halt was lifted went above $264.00.  There have also been over 2.85 million shares traded since the close (includes after-hours trades that were pre-halt times before the 4:20 PM halt).

JON C. OGG