Apple: I Would Never Say, 'I Told You So'
NEW YORK ( TheStreet) -- Saying I told you so is often perceived as somewhat of an antagonistic quality. It's not something that anyone with grace would dare say -- particularly someone such as myself who wants to be perceived as having some modicum of class.
And besides, there's a lot of honor in taking the high road, especially these days as it appears to be the road less traveled. So it is with this understanding that I can indeed resist the temptation of saying I told you so . But it's not because this comes easy.
|Apple reported its fourth-quarter results after the markets closed Tuesday.|
On Tuesday, upon the release of my article suggesting that tech giant Apple(AAPL) would begin its march towards a quadruple-digit share price by releasing a solid second-quarter report, both my iPhone and iPad alerted me with text messages and emails advising that I needed therapy.
Remarkably, I almost listened and took that advice upon seeing the stock drop to $555 after having closed the previous session at $571. At that point the stock had lost $90 off of its $644 high that it registered on April 10 or roughly 14% of its value.
To make matters worse, in my mind there was Qualcomm's(QCOM) supply chain concerns coupled with AT&T's(T) less than stellar iPhone sales both served to heighten the level of anxiety that I felt after now having gone on record suggesting that not only was Apple going to deliver another market-beating performance, but it was also heading to $1,000.
I turned off my iPhone to ignore the ridicule and wondered if this was the end of my writing career.
It is remarkable when one considers the stark contrast of early April when upon the release of the new iPad as well as the company's announced dividend, it seems everything was going right. But lately, the entire market has become a victim of "Murphy's Law" -- that is to say, anything that could have gone wrong to this point, has. That was just enough to make me question my level of loyalty.
But then something happened, Apple once again defied logic and common sense and reminded the market (once again) what can be accomplished when you meet excellent vision with exceptional execution.
The Quarter That Was
I have run out of words that can accurately describe Apple's recent string of performances - many of which continue to disregard reason and sound basis. On Tuesday, the company announced a 94% increase in earnings to $11.6 billion or $12.30 per diluted share on quarterly revenue of $39.19 billion. This is remarkable when you consider that in the same quarter of a year ago the company generated revenue and net profit of (only) $24.7 billion and $6 billion respectively. Gross margin arrived at 47.4% compared to 41.4% in the year-ago quarter. International sales accounted for 64% of the quarter's revenue.