Apple's Net Income Relative to Revenue Continues to Rise
By Posts At Eventide:
On July 19, Apple (AAPL) reported record revenue and earnings for the three-month period ended in late June. The third fiscal quarter's 89% revenue growth to $28.571 billion and 122% earnings per share (eps) growth to $7.79 represented surprisingly strong results due to better than expected sales of iPhones and iPads.
Apple's Nine-Month Performance
For the first nine months of the fiscal year ending in late September, Apple has realized revenue growth of 78.2% to $79.979 billion and eps growth of 96.3% to $20.63. Considering the continuing "share creep" in the fully diluted share count, the company's eps performance over this nine-month period becomes even more impressive as the numbers are analyzed.
Rising Net Income as a Percentage of Revenue
Underpinning the exceptional rates of eps growth is the rising percentage of each revenue dollar that flows to the company's net income line. The graph below illustrates the growth inComplete Story »