Apple soothes investors with profit surge

Apple nearly doubled its fiscal 2Q12 (calendar 1Q) profit on strong iPhone demand, allaying the fears of jittery investors that had been driving down its stock price.
 
The company posted a profit of $11.6 billion (€8.7 billion) in fiscal 2Q12, almost twice the $6 billion it made in fiscal 2Q11, as revenues rose $14.5 billion year-on-year to $39.2 billion. iPhone sales were the major driver for the firm, with shipments up 88% to 35.1 million units. iPad sales hit 11.8 million units, and the firm shipped 4 million Mac computers during the period.
 
However, the firm relied on overseas markets for sales growth during the quarter, with launches of the iPhone 4S in China and 21 other countries in January offsetting lower sales in Apple’s domestic market.
 
Apple’s earnings of $12.30 per share were well above the $10.02 per share price analysts polled by Bloomberg predicted.
 
However, the firm’s outlook for the current quarter – profit of $8.68 per share and revenue around $34 billion - are below the analysts’ expectations. Bloomberg’s poll predicted profit of $9.96 per share and revenue of $37.5 billion.
 
The fiscal 2Q results were good enough to allay the fears of nervous investors. Apples stock climbed 7.77% in after hours trading after two weeks of declines.