This afternoon Apple announced financial results for its fiscal 2016 fourth quarter ended September 24, 2016. The Company posted quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share. These results compare to revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter's revenue.
Last quarter Apple's CFO Luca Maestri guided revenue between $45.5 and 47.5 billion, so Apple's $46.9 billion was right in the middle of that guidance. Gross margins were forcast to be 37.5 and 38% and Apple came in at 38%, right on target. What Wall Street forecast is irrelevant.
Apple's CEO Tim Cook stated that "Our strong September quarter results cap a very successful fiscal 2016 for Apple. We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record."
Luca Maestri, Apple's CFO noted that "We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter. We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program."
Apple is providing the following guidance for its fiscal 2017 first quarter:
•revenue between $76 billion and $78 billion
•gross margin between 38 percent and 38.5 percent
•operating expenses between $6.9 billion and $7 billion
•other income/(expense) of $400 million
•tax rate of 26 percent
Apple's board of directors has declared a cash dividend of $0.57 per share of the Company's common stock. The dividend is payable on November 10, 2016 to shareholders of record as of the close of business on November 7, 2016.