Tuesday, October 20, 2009

Apple surges on strong results

Apple stock rallied Tuesday a day after the maker of the iPod and iPhone reported record profits, overcoming difficult global economic conditions.

Apple shares vaulted 4.7 percent to 198.85 dollars in morning trade, near its all-time high of 202.96 dollars in December 2007.

RBC Dominion Securities analyst Mike Abramsky said Apple showed "resiliency despite recession" and that its "typically conservative outlook was stronger than expected."

The analyst said he sees "continued innovation" by the company with its in Macs computers, iPods and iPhones and "above-peer margins and cashflow."

Apple on Monday reported quarterly net profit of 1.67 billion dollars on record sales of iPhones and Macintosh computers.

Apple recorded 9.87 billion dollars in revenue during the fourth quarter of its fiscal year, which ended September 26, compared with 7.9 billion dollars in revenue in the same period last year.

Apple's quarterly profit amounted to 1.82 dollars per share, a jump from the same quarter last year when it reported profit of 1.14 billion dollars, or 1.26 dollars per share.

Apple also predicted record revenue for the current quarter of 11.3 to 11.6 billion dollars.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," said Apple chief executive Steve Jobs. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

Rumors of Apple gadgets being readied for market include an "iTablet" computing device akin to a magazine-sized iPhone that could be used for reading digitized books as well as watching videos or surfing the Internet.

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