Apple Inc (AAPL) Resumes Trading, Stock Down

Shares of Apple Inc. (AAPL) were lower in afterhours after the company blew away expectations but came in low on margins. Apple Inc. reported revenue of 20.34 billion vs 18.90 billion as well as earnings per share of $4.64 vs $4.08. Apple Inc (AAPL) is trading at $301 on heavy volume.

Apple disappointed on margins but it was still an overall good quarter.

Apple has now established a nice base above $300 but is still pricey up here. Apple stock may not fall right away but most of the gains have already been made. Wall Street didn't want Apple stock in the $240's 1-2 months ago but now all of a sudden they are sending this stock into orbit. These situations tend to end badly but Apple has been defying the odds for nearly 5 years now and has amazing products. We'll see where this stock is at come February and March of 2011 when the slow season hits.

Apple's earnings to showcase one-two punch

Apple FY Q4 Beats: Revs $20.34B; EPS $4.64; 3.89M Macs; 14.1M iPhones; 9.05M iPods; 4.19M iPads

Apple® today announced financial results for its fiscal 2010 fourth quarter ended September 25, 2010. The Company posted record revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share. These results compare to revenue of $12.21 billion and net quarterly profit of $2.53 billion, or $2.77 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent compared to 41.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarter’s revenue.

Apple sold 3.89 million Macs during the quarter, a 27 percent unit increase over the year-ago quarter. The Company sold 14.1 million iPhones in the quarter, representing 91 percent unit growth over the year-ago quarter. Apple sold 9.05 million iPods during the quarter, representing an 11 percent unit decline from the year-ago quarter. The Company also sold 4.19 million iPads during the quarter.

“We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings—both all-time records for Apple,” said Steve Jobs, Apple’s CEO. “iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year.”

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