Apple Financial Analysis - Published by formerly Indews Finacial
Apple, Inc. Key Statistics
As of January 18, 2007, Apple's Current Market Rate is about $76.54 billion (from Yahoo Finance). Apple, Inc. beta is 2.41 on Yahoo, while Reuters shows Apple, Inc. beta as 1.47, I am not sure which of the either is accurate or obsolete. Apple, Inc. has 859.27 million shares outstanding, of which insiders hold institutions hold 4.76% and 77.50%. At 4:01 PM EST, Apple's stock traded at $89.07, down 6.19%.
For 52 weeks Ending 2001-09-29, Apple had $5,363 million in revenues, gross profit of $1,235 million, and a NEGATIVE operating income of $344 million. It incurred a loss of $52 million before tax, and Income After Tax was NEGATIVE $37 million. Apple improved its position in the next year, having revenues of $5,742 million, gross profit of $1,603 million, and a positive income of $17 million. Apple's income after tax for the fiscal year was $65 million. For Fiscal Year ending 2003-09-27, Apple increased its Total revenue and expenses. Apple's total revenues stood at $6,207 million, negative total expenses of $6,208 million. Apple's income after tax stood at $68 million, and a net income of $69 million. The next Fiscal Year - 2004-09-27, saw a considerable rise in Total Operating expenses and revenues. Apple, Inc. net income stood at $266 million - a whopping increase of 285.5% over the previous year. Fiscal years ending in 2005 and 2006 both saw a tremendous rise in Apple's revenues. Apple income after tax for 2005 was $1,328 million an astonishing increase in revenues of 399.24%. For fiscal year ending 2006-09-30, Apples income after tax was $1,989 million, an increase of 49.7%. Apple's earning per share for the fiscal year ending 2006-09-30, was $2.27, the previous year: $1.55, and year the before $.36. Apple has consistently been providing value to its shareholders as one can infer after reading the data. From a loss of $37 million in 2001, Apple increased its revenues after taxes to $1,989 million and earnings per share from negative $.04 to a strong $2.27 EPS.
Apple Stock History
Apple's history over the course of 5 years, Apple closed from $21.82 on January 22, 2002 to $89.07 on January 18, 2007. Apple's stock average over the 5 years was $ 39.88, its stock closed as high as 97.1. Over the course of last year, Apple's stock averaged $71.34. The stock's average is counted from January 18 2006 to January 18 2007.The rise in stock price is an increase of 7.96%. Over the same period, Microsoft's increase in its stock price was over 15.53%, Hewlett-Packard Company over 33.60%, and Cisco 41.21%. Clearly, Apple's major competitors outperformed Apple's stock performance. The Graph Below illustrates Apple, its major competitors and S&P 500.
During the last one year, the Computer Hardware industry decreased by .77%, while S&P 500 increased 11.61%. The graph below illustrates the industry Apple, Inc. is competing and S&P 500:
Important Events Affecting Apple, Inc. Stock
There have been numerous events that affected Apple Stock. The events will be detailed below, and how much a particular event affected Apple, Inc. stock. Events that affected Apple stock could range from unveiling of a new and a promising innovative product or disappointing earnings. The following briefs important events affecting Apple stock over 1 year.
- April 19, 2006: Apple Computer, Inc. announced that it expected its third quarter revenues to be around $4.2-$4.4 billion, GAAP earnings of $.39-$.43 per share, translating to non-GAAP earnings of $.43-$.47 per share. Analysts expect non-GAAP earnings of $0.47 per share on revenues of $4.72 billion in the same period.
- May 8, 2006: Apple Computer, Inc. won a lawsuit against Beatles. The London Court ruled that Apple Computer, Inc. was not liable for trademark infringement against Apple Corps.
- May 19, 2006: Apple Computer, Inc. filed a counter-suit against Creative Technology for dispute over patent rights over rival digital music players.
- June 29, 2006: Apple Computer, Inc discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001, Apple investigates the issue.
- July 6, 2006: Two lawsuits have been filed against Apple for its irregularities in its Stock Options grants.
- August 3, 2006: Apple delayed filing of its Form 10-Q for the quarter ended July 1, 2006 as it investigated its stock option irregularities. Apple appointed an independent counsel to perform the investigation.
- August 6, 2006: Wall Street Journal reported several irregularities in Apple's stock option grants between 1997 and 2001. Apple mentioned that one of the awards involved Steve Jobs.
- August 11, 2006: NASDAQ Staff Determination issues Apple Computer, Inc. for not complying with filing requirements. Apple Computer, Inc. announced that the Company would request a hearing before the NASDAQ Listing Qualifications Panel.
- October 4, 2006: The special committee appointed by Apple Computer, Inc. found no misconduct by any member of Apple's current management team. The committee did find evidence of irregularities related to a January 2002 grant.
- December 27, 2006: Federal Officials investigated whether former Apple Computer Inc. officials forged documents to maximize executives' profit from stock options.
- January 9, 2007: Apple, Inc. unveiled Apple TV and IPHONE TV to conquer new technology markets since the company launched the original iPod in October 2001. Apple's stock increased by $7.10 a share, or 8.3%, to an all-time closing high of $92.57.
Final Thoughts
I do not believe that Apple is doing a spending job in regards to its competitors. Over the course of one year, Apple's stock performance was lower than Microsoft, HP, and Cisco. Although, there has been a great euphoria over Apple's IPHONE, I personally believe that it is exaggerated. For $599, it is an expensive phone, and is tied to Cingular. As a subscriber of Sprint, and whose contract is about to expire, I see no reason to switch to Cingular in order to adopt IPHONE when it arrives. I am quite a fan of latest gadgets; I bought Microsoft Zune the day it came out just to see how it does. But I am pretty sure, that there will be numerous competitors to Apple who will deliver products just as good as IPHONE, much cheaper, and most importantly one that is not tied to a wireless provider. Since, APPLE is calling it simply as an innovation in phones, I am not sure how it will stand against Sprint's Wimax`(when it successfully launches) and its phones, which I am looking forward much more than over-hyped Apple IPHONE.
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