Apple Computer Inc provided a welcome change in an increasingly gloomy earnings season yesterday by reporting third quarter results that were slightly ahead of expectations on the back of a leap in iPod sales.
The Mac vendor followed up the respectable third quarter performance by not springing any nasty surprises with its fourth quarter guidance.
Total revenues for the quarter ending June 26 were $2bn, up 30% on the year, and slightly ahead of the $1.95bn expected. Operating income was $72m, compared to $9m a year ago, while net income was $61m, compared to last year’s $19m. This resulted in earnings per share of $0.16, or $0.17 once a restructuring charge was excluded. Analysts had expected $0.15 per share.
While Apple saw Mac revenue climb 19% to $1.3bn, the biggest leap came in its music-based business. Sales of iPods jumped 124% to $249m, while sales of other music products, including its iTunes business, were worth $73m compared to $12m a year ago.
For its fourth quarter, Apple expects sales to come in around $2.1bn, generating earnings per share of $0.16 to $0.17, including a penny per share in restructuring charges. Analysts currently expect sales of $2.06bn with earnings of $0.17.
For the year to date, sales are $5.9bn, with net income of $170m.