Apple falls as strong iPad and Mac sales fail to make up for iPhone decline

Thu, Oct 29 2020

Apple reported fourth-quarter earnings on Thursday that slightly exceeded Wall Street expectations, but the company did not offer investors any guidance for the quarter ending in December. iPhone sales were down more than 20% year-over-year.

Here’s how Apple did versus analyst expectations via Refinitiv estimates:
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• EPS: 73 cents vs 70 cents estimated
• Revenue: $64.7 billion vs $63.70 billion estimated, up 1% year-over-year
• iPhone revenue: $26.44 billion vs. $27.93 billion estimated, down 20.7% year-over-year
• Services revenue: $14.55 billion vs. $14.08 billion estimated, up 16.3% year-over-year
• Other Products revenue: $7.88 billion vs. $7.40 billion estimated, up 20.9% year-over-year
• Mac revenue: $9.0 billion vs. $7.93 billion estimated, up 28% year-over-year
• iPad revenue: $6.8 billion vs. $6.12 billion estimated, up 46% year-over-year
• Gross margin: 38.2% vs. 38.1% estimated

The lack of fiscal first-quarter 2021 guidance from Apple means that investors and analysts don’t get a hint at how Apple is projecting the sales performance of the iPhone 12, which went on sale in October.

“If you look at the case count, the case counts are climbing in Western Europe. They’re climbing in the United States. And so there’s still a sufficient level of uncertainty out there… we don’t believe that’s an environment to guide into,” Apple CEO Tim Cook told CNBC’s Josh Lipton.

Apple hasn’t offered guidance for the past two quarters because of uncertainty related to the Covid-19 pandemic.

However, Cook said that he was optimistic about iPhone 12 sales for a number of reasons, including 5G support, carrier promotions, and a loyal install base, and said that “initial data points are really quite good.”

iPhone revenue was down over 20% from the same quarter last year and came up short against Wall street expectations. However, many investors and analysts are more focused on how the iPhone 12 will sell in the coming year. Apple’s iPhones went on sale this year in October, and more models are planned for next month, meaning that sales from the new devices aren’t counted in this quarter.

Revenue for Macs and iPads both exceeded analyst expectations, most likely driven by strong work-from-home trends during the pandemic. Apple drew attention to strong results in those categories last quarter, too. Overall, Mac revenue was up 28% year-over-year and iPad revenue rose 46% from the same quarter last year.

Sales in China were a weak point for Apple. Sales in greater China, which includes Hong Kong and Taiwan, dropped to $7.95 billion from $11.13 billion a year before, over a 28% decrease.

“A larger percentage of China revenue is made up of new iPhones. And so that’s the reason the number for the total quarter started with a minus sign. But given what we see in the early going with the new iPhones, we’re confident we’ll grow in Q1,” Cook told CNBC.

Here’s how Apple did versus Refinitiv consensus estimates:

• EPS: $1.24 vs. $1.24 estimated
• Revenue: $83.36 billion vs. $84.85 billion estimated, up 29% year-over-year
• iPhone revenue: $38.87 billion vs. $41.51 billion estimated, up 47% year-over-year
• Services revenue: $18.28 billion vs. $17.64 billion estimated, up 25.6% year-over-year
• Other Products revenue: $8.79 billion vs. $9.33 billion estimated, up 11.5% year-over-year
• Mac revenue: $9.18 billion vs. $9.23 billion estimated, up 1.6% year-over-year
• iPad revenue: $8.25 billion vs. $7.23 billion estimated, up 21.4% year-over-year
• Gross margin: 42.2% vs. 42.0% estimated

Apple becomes first U.S. company to reach $3 trillion market cap

Mon, Jan 3 2022

Key Points
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• Apple hit a market cap of $3 trillion, tripling in valuation in under four years.
• The milestone is mostly symbolic but it represents investor recognition of Apple’s success over the past few years as the company has reported several record-breaking quarters of big growth in all of its product lines.
• Apple’s cash flow also makes the stock a safe haven during times of market uncertainty.

Apple revenue pops 11% to $123.9 billion, Cook says supply chain improving

Thu, Jan 27 2022

Apple CEO Tim Cook said on Thursday that the company’s supply chain challenges were improving, sending shares up about 5% in extended trading, while delivering a solid beat on earnings.

Apple beat analyst estimates for sales in every product category except iPads and overall revenue was up 11% annually.

Here is how Apple did in the quarter ending Dec. 25 versus Refinitiv consensus estimates:
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• EPS: $2.10 vs. $1.89 estimated, up 25% year-over-year
• Revenue: $123.9 billion vs. $118.66 billion estimated, up 11% year-over-year
• iPhone revenue: $71.63 billion vs. $68.34 billion estimated, up 9% year-over-year
• Services revenue: $19.52 billion vs. $18.61 billion estimated, up 24% year-over-year
• Other Products revenue: $14.70 billion vs. $14.59 billion estimated, up 13% year-over-year
• Mac revenue: $10.85 billion vs. $9.52 billion estimated, up 25% year-over-year
• iPad revenue: $7.25 billion vs. $8.18 billion estimated, down 14% year-over-year
• Gross margin: 43.8% vs. 41.7% estimated

Apple again did not provide official guidance about expectations for the current quarter. Apple hasn’t provided guidance since the start of the Covid-19 pandemic, citing uncertainty.


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