Apple (AAPL) blew by the Zacks Consensus Estimate after the bell reporting fiscal first-quarter 2010 earnings per share of $3.67 compared to the estimate of $2.08. The company saw both record revenue and profits.
It was almost a perfect quarter for the technology giant. iPhone and iPod sales were in line with estimates, even as iPod sales fell 8% compared to a year ago. Sales of the iPhone doubled compared to a year ago as the company rolled it out in new international markets like China. But it was the Mac sales, which were up 33%, which fueled the strong quarter.
More surprisingly, guidance for fiscal second quarter was better than expected. Apple has a history of guiding lower, to mute expectations, but it gave second quarter guidance of $2.06 to $2.18, well above the current Zacks Consensus of $1.77 per share.
One caution about the quarter is a change in the accounting procedure for booking revenue, specifically with the iPhone. How much did this accounting change impact the results and how much is it influencing the higher guidance for the next quarter? These questions remain to be sorted out in the next several days.
Apple isn’t done being in the news either, as it is due to unveil the not-too-secret Apple Tablet on Wednesday. The company will apparently have plenty of cash on hand to support this new product as it generated $5.8 billion in cash during the fiscal first quarter.
Apple is a Zacks #2 Rank (buy) stock.
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