Apple Inc. (NASDAQ: AAPL) CEO Tim Cook, whose net worth is estimated to be $110 million, announced the technology company’s second quarter 2016 financial results after the close of regular trading today. The company reported EPS of $1.90, missing the Wall Street analyst consensus of $2.00 by $0.10 or 5.0 percent and revenues of $50.55 billion, missing the Wall Street consensus of $51.97 billion by 2.7 percent.
The EPS figure represents year over year growth of -18.5 percent. The revenue figure represents growth of -12.9 percent. AAPL shares are quoted down $6.45, more than 6 percent, to $97.90, in heavy NASDAQ after-hours trading.
Apple reported iPhone sales of 51.19 million, in line with Wall Street expectations of about 50 million, as reported by Investor’s Business Daily.
“Our team executed extremely well in the face of strong macroeconomic headwinds,” Tim Cook was quoted in the Apple press release. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”
Tim Cook and Apple management will host a webcast and conference call, scheduled for 5 p.m. ET.
The Apple CEO currently holds 1,039,598 AAPL shares, valued at $108.6 million and 12,682 shares of NIKE, Inc. (NYSE: NKE), valued at $756,000, giving Tim Cook a net worth of more than $110 million if his other compensation is considered, as reported by Yahoo Finance. In March, 2015, it was reported by Fortune that Cook also held restricted Apple shares that, if fully vested, would be valued at more than $600 million. Tim Cook has indicated that he intends to give away “all his wealth.”
The $2.00 AAPL EPS consensus among analysts going into today’s report would have represented a 14.2 percent reduction from second quarter 2015 levels. Estimates had remained steady over the past 90 days. The Inquisitr has reported previously on dim reported Apple profits, with first quarter 2016 earnings of $11.6 billion, down 18 percent year over year.
For the third quarter of 2016, the current consensus is for AAPL EPS of $1.76, down from $1.85 in the third quarter of 2015. Estimates have remained steady over the past 90 days.
For the full 2016 year, the consensus is for AAPL EPS of $9.03, down from the reported $9.22 in 2015. For the full 2017 year, the consensus is for AAPL EPS of $9.95, which, if met, would represent growth of 7.9 percent from forecast 2016 levels.
Over the coming five years, analysts currently forecast average annual AAPL EPS growth of 10.8 percent.
The full year 2016 Apple revenue consensus is $226.71 billion, which would be down 3.0 percent, year over year. The full year 2017 view is for Apple revenues of $240.09 billion, which, if met, would represent year over year growth of 5.9 percent from forecast 2016 levels.
Over the past 12 months, shares of Apple lost close to 20 percent of their value; over the same period, the Dow Jones Industrial Average (^DJI) lost just under 1 percent. AAPL shares pay an annual dividend of $2.08, currently yielding 1.97 percent.
At the end of the company’s fiscal 2016 first quarter, the Apple year end is in September, as reported by Yahoo Finance, Tim Cook and Apple management reported a cash position of $38.39 billion and total debt of $62.99 billion. Apple’s reported debt to equity ratio at the time was 49.11 percent.
Apple has several dozen outstanding bond issues with maturities as far in the future as February, 2046, as reported by Morningstar.
Also at the end of the Apple first quarter, the management team reported a robust operating margin of 30.28 percent and a profit margin of 22.87 percent. Apple return on equity at the time was reported as a strong 42.71 percent.
Thirty-eight research firms currently publish price targets for AAPL stock, as reported by Yahoo Finance; estimates range from $82 to $200 and average $133.87. Of firms that publish buy and sell recommendations, the mean recommendation is 1.9, where 1.0 is strong buy and 5.0 is a sell.
In 2016, five reported analyst actions have occurred with regard to AAPL shares, including a downgrade to “neutral” by Rosenblatt, an initiation at Needham at “strong buy,” and three upgrades by Mizuho, Bank of America Corporation (NYSE: BAC), and Cowen.
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