Apple is Still Hoarding Cash
Apple (NASDAQ:AAPL), currently the world’s largest publicly traded company, reported its latest round of earnings after Wednesday’s closing bell. The results on the top line disappointed analysts, but the tech giant beat on earnings and is still a huge cash hoarding machine.
For its fiscal 2013 first quarter, Apple posted a net profit of $13.1 billion ($13.81 per diluted share), compared to $13.1 billion ($13.87 per diluted share) a year earlier. The recent quarter included one less week than a year earlier, but revenue still jumped 17.7 percent to $54.5 billion. Analysts had expected Apple to earn $13.47 per share on $54.9 billion in revenue. Apple’s own estimates called for $11.75 per share with revenue coming in at $52 billion.
Mr. Market was not pleased with the results. Shares of Apple fell more than 10 percent in late Wednesday trading and reached their lowest level since early 2012. The selling pressure continued into Thursday, with shares reaching below $460.
On the positive, Apple sold a record 47.8 million iPhones in the quarter, compared to 37 million a year earlier. Apple also sold a record 22.9 million iPads. International sales accounted for 61 percent of the quarter’s revenue.
Furthermore, Apple continues to build its war chest of cash…