As expected, on the last day of July, Apple announced the results of the third quarter of 2018 fiscal year ending on June 30. Quarterly revenue of the company increased by 17% compared to the same period last year and amounted to $ 53.3 billion, while earnings per share increased by 40% to $ 2.34. These figures surpassed analysts’ expectations, which predicted $ 52.3 billion and $ 2.18, respectively.
Revenues from services also turned out to be higher than expected – instead of the expected $ 9.1 billion, Apple earned over $ 9.5 billion, which is 31% more than last year. A series of lawsuits brought the company $ 236 million in damages.
The net income of Apple was $ 11.5 billion as the operating cash flow rose to $ 14.5 billion. International sales accounted for 60% of Apple’s quarterly revenue, while the average price tag of smartphones sold over the period, according to FactSet, rose to $ 724, well above analysts’ forecasts of $ 694. The Apple giant’s CFO Luca Maestri said the success was thanks to the popularity of iPhone X, and called it the brand’s best-selling device by the end of the quarter. The model has become the most expensive Cupertino phone in history.
Apples’ brilliant financial performance allowed returning during $ 25 billion in the capital return program, including $ 20 billion due to the repurchase of shares. The company looks into the future with no less optimism. So, in the fourth and final quarter of the 2018 financial year, the company plans to earn $ 60 to 62 billion with a gross margin of 38-38.5%. Operating expenses are expected to be at $ 7.95-8.05 billion.
The increase in the forecast revenue in relation to the previous three-month reporting period is explained by the start of sales of the new-generation iPhone, presumably to be unveiled in September.
It is also important that in the fourth quarter of fiscal year 2018, Apple could become the world’s first company with a market capitalization of $ 1 trillion. Last Monday, the company was valued at $ 938.7 billion at market’s closure.