This tech stock’s hugely popular products continue to boost its earnings

Apple Inc., symbol AAPL on Nasdaq, makes computers and a wide range of electronic devices, including the iPhone and iPad tablet computer.

Apple is one of the tech stocks we analyze in Wall Street Stock Forecaster, our newsletter for investing in U.S. markets.

In its 2011 third fiscal quarter, which ended June 25, 2011, the tech stock’s revenue rose 82.0% to $28.6 billion from $15.7 billion a year earlier. That easily beat the consensus revenue estimate of $25 billion.

Earnings in the quarter jumped 124.7% to $7.3 billion from $3.3 billion. The tech stock’s earnings per share rose 121.9%, to $7.79 from $3.51. The latest earnings exceeded the consensus estimate of $5.85 a share.

During the quarter, the company sold 20.3 million iPhones (up 142.2%) and 9.3 million iPads (up 182.8%). Mac computer sales rose 13.7%, to 3.9 million, however iPod sales fell 19.9%, to 7.5 million, as users upgrade to iPhones.

Apple is still debt free, and holds cash and securities of $76.2 billion, or $82.16 a share. The company does not pay a dividend. Instead, it prefers to use its excess cash for acquisitions and developing new products such as the iPad and its upcoming iCloud service, which will let the tech stock’s users easily access their data on multiple devices.

We updated our buy/sell/hold advice on Apple in our July 22, 2011 Wall Street Stock Forecaster hotline, which you can immediately view when you take a 1-month free trial to Wall Street Stock Forecaster. Click here to get started right away.

(Note: If you are a current Wall Street Stock Forecaster subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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