October 23, 2007 in Business

Apple, Netflix profits soar

From Wire Reports The Spokesman-Review
 
Associated Press photos photo

iPhone is featured in a display at an Apple store in Palo Alto, Calif. Associated Press photos
(Full-size photo)

Apple Inc.’s fiscal fourth-quarter profits jumped 67 percent and easily beat Wall Street expectations, capping a record-breaking year that saw unprecedented momentum in its Mac business, ceaseless consumer interest in its iPod players and a successful introduction of its newest endeavor, the iPhone.

For the three months that ended Sept. 30, Apple said Monday it earned $904 million, or $1.01 per share, compared with $542 million, or 62 cents per share, in the year-ago quarter. Revenue totaled $6.22 billion, compared with $4.84 billion in the same quarter last year.

Apple’s stock price, which has more than doubled since January, rose $3.94, or 2.3 percent, to close at $174.36.

After the earnings report, shares climbed $9.50, more than 5 percent, in extended trading.

Apple said it shipped a record 2.16 million Macs in the quarter, an increase of 34 percent, while it sold 10.2 million iPods, up 17 percent.

In the first full quarter of iPhone sales, Apple said it sold 1.12 million units, bringing the cumulative total to 1.39 million since the product debuted June 29.

Netflix Inc.’s third-quarter profit soared past analysts’ expectations as the online DVD rental pioneer battled rival Blockbuster Inc. with a price-cutting strategy that helped revive subscriber growth.

The news, released after the stock market closed Monday, lifted Netflix’s stock price by more than 12 percent in after-hours trading.

The Los Gatos, Calif.-based company said it earned $15.7 million, or 23 cents per share, for the three months ended September. That represented a 23 percent increase from net income of $12.8 million, or 18 cents per share, in the same period last year.

Royal Caribbean Cruises Ltd., the world’s second-largest cruise operator, sailed to a 14 percent increase in third-quarter profit on Monday, beating Wall Street expectations on higher yields due to strong late bookings.

The Miami-based company also raised its earnings guidance for the rest of the year and said bookings and pricing were shaping up well for the first quarter of 2008.

The results sent shares up $3.01, or 7.7 percent, to $42.26 on Monday.

In the quarter ended Sept. 30, the company earned $395 million, or $1.84 per share, up from $345.4 million, or $1.63 per share, a year ago.

Hasbro, Inc., the world’s second-largest toymaker, said Monday its third-quarter profit climbed 62 percent on higher sales led by Transformers and Spider-Man toys and a favorable tax adjustment.

The Pawtucket, R.I.-based company also said its business has not been hurt by high-profile recalls for lead paint by several other toy companies, including its chief rival, Mattel Inc.

The results easily beat analysts’ expectations for the quarter, but shares dipped 1 cent to close at $28.40 Monday.

Earnings surged to $161.6 million, or 95 cents per share, in the three months ended Sept. 30 compared with $99.6 million, or 58 cents per share, in the year-ago period.


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