3 Highlights Of Apple's Spectacular Quarterly Results: CLSA Analyst

Apple Inc. AAPL again did what has become a habit for the company, posting quarterly results that blew analysts estimates. The 55 percent year-over-year jump in iPhone sales led the company to post revenue of $40.3 billion for the quarter, significantly above the consensus estimate of $36.8 billion.

EPS for the quarter came at $2.33, significantly above last year’s $1.66 and analysts’ expectations of $2.15. Avi Silver, CLSA Analyst, was on CNBC post Apple’s results to weigh in on the numbers.

Astonishing iPhone Sales

“First in the quarter they generated free cash flow of about $17 billion, year-to-date that’s $47 billion,” Silver said. “Three things I would highlight from the quarter. First of all the iPhone number of 61 million and change are better than our 58.8 million and the Street at 57 million and change.”

Android Switching Better Than Anticipated

He continued, “They highlighted basically a lot more Android switching than they originally anticipated. That’s the first point, the second point on gross margin they guided 39 to 40 percent, we were at 40.3 they came in at 40.8 percent, this continues to be a gross margin expansion story.”

China May Have Surpassed U.S.

“And then the third point is really China. China is much stronger than expected, they didn’t actually provide this number, but we suspect China may have surpassed the U.S. in terms of revenue in the quarter. China actually grew revenue 71 percent year-on-year and it seems like there’s better growth coming from China as well going to the future,” Silver concluded.