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Posts tagged with "earnings"

Apple Reports First Year-Over-Year Earnings Drop Since 2019

The past quarter has not been kind to Apple. Today the company announced its first revenue drop since 2019, with total revenue of $117.2 billion, a 5% year-over-year drop. Going into today’s earnings call, the consensus of Wall Street analysts was that Apple would log $121.19 billion of revenue or $1.94/share.

Tim Cook, Apple’s CEO, had this to say about the company’s earnings:

As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do. During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base.

The year-over-year decline was driven by multiple factors, including:

  • Shortages of iPhone 14 Pro and Pro Max caused by COVID lockdowns in China
  • Soft consumer demand resulting from worldwide inflationary pressure
  • Adverse effects caused by foreign currency exchange rates

Although Apple did not forecast results for Q1 2023 during its last earnings call, the company warned in November that production disruptions would impact shipments, so the declines today should not be a shock.

Despite Apple’s unusually poor showing today, it’s also important to put it in perspective. The entire technology sector has seen significant declines, with Microsoft, Meta, Google, and Amazon all laying off thousands of workers. To date, Apple has avoided widespread layoffs and there were bright points in its earnings, including the continued growth of its services, which increased to a record $20.8 billion.

With the entire tech industry experiencing substantial financial pressures, the question going forward is how quickly can Apple bounce back. Will the company be able to meet iPhone demand, and how will its rumored bet on a mixed-reality headset play out? With turmoil in the markets at large and a major new product in the wings, Apple’s 2023 should be one of the more interesting years in a long time, both for its investors and fans of its products.


Apple Reports Expectations-Beating Q4 2022 Results of $90.1 Billion

Foreign exchange headwinds dampened Apple results. Source: Apple.

Foreign exchange headwinds dampened Apple results. Source: Apple.

Today, Apple announced its fourth quarter 2022 earnings, exceeding Wall Street expectations and setting a record for Q4 results. During the quarter, Apple recorded $90.1 billion in revenue, an 8% year-over-year increase. Annual earnings per diluted share were $6.11, which is an increase of 9% year over year. In after-hours trading, Apple’s stock was trading down.

Apple's quarterly revenue.

Apple’s quarterly revenue.

According to Apple’s CFO Luca Maestri:

Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop. We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter. The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high. This quarter capped another record-breaking year for Apple, with revenue growing over $28 billion and operating cash flow up $18 billion versus last year.

Services were down for the quarter.

Services were down for the quarter.

Looking at the results, Services revenue declined slightly, and iPhone sales were less than analysts expected, both of which contributed to the decline in Apple’s stock price after hours. iPad sales were down too. Although Apple just recently refreshed the iPad lineup, none of those sales were part of today’s results.

Mac had a good quarter, while iPad sales were down a bit, changing the overall mix of the company's revenue sources.

Mac had a good quarter, while iPad sales were down a bit, changing the overall mix of the company’s revenue sources.

Foreign currency exchange rates had a significant impact on Apple’s latest results too. Tim Cook, who was interviewed by CNBC, told Steve Kovach:

The foreign exchange headwinds were over 600 basis points for the quarter. So it was significant. We would have grown in double digits without the foreign exchange headwinds.

To help control ongoing costs, Cook also revealed to CNBC that it has slowed hiring.

Despite some areas of softness, the results reported by Apple were positive overall, especially compared to other recent earnings misses in the tech world. Yesterday, Meta announced a significant earnings miss that led to a nearly 25% drop in its stock price today. Then today, Amazon came up short compared to Wall Street expectations leading to a 16% dip in its stock price.

Additional details regarding Apple’s fourth-quarter performance, including its consolidated financial statement are available on the company’s website. If you missed the earnings call, you can replay it on Apple’s Investors site or read the transcript prepared by Jason Snell at Six Colors, where you’ll also find additional charts.


Apple’s Q3 2022 Earnings Narrowly Beat Wall Street Expectations

Yesterday, Apple announced its third quarter 2022 earnings, narrowly beating analysts’ consensus expectations. The company didn’t provide earnings guidance going into yesterday’s call and hasn’t since the start of the global pandemic. Coupled with ongoing supply chain disruption caused by COVID-19, inflationary pressure in the US and other countries, and the threat of a recession in many of its key markets, analysts’ revenue predictions varied widely, averaging just under $83 billion. So, when the company’s revenue came in at $83 billion, and CEO Tim Cook said he expects growth to accelerate ‘despite pockets of softness,’ Wall Street responded positively, lifting the stock’s price in after-hours trading.

![](https://cdn.macstories.net/967466ed-d433-4313-8ccf-4500db12f669-1659092186095.jpeg)

![](https://cdn.macstories.net/14b2f904-114f-48be-9424-b5bd63a7c76a-1659092186097.jpeg)

According to Apple’s CFO Luca Maestri:

Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category. During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.

![](https://cdn.macstories.net/image-1659119008915.jpeg)

Despite the modest and unexpected growth from the same quarter in 2021, product sales slowed in some areas, with the Mac, iPad, and wearables all down year-over-year. That was made up by a strong increase in Apple’s services and a smaller increase in iPhone sales, but given delivery timelines for Macs and iPads in particular, supply chain issues appear to have taken a bite out of Apple’s earnings in those categories.

Still, the overall outlook of continued growth portrayed by Cook as the company prepares its fall iPhone lineup and for the release of other rumored products seems to have buoyed the stock with investors who undoubtedly appreciated the company’s optimistic message among the drumbeat of recent negative financial news.

Additional details regarding Apple’s third-quarter performance, including its consolidated financial statement are available on the company’s website. If you missed the earnings call, you can replay it on Apple’s Investors site or read the transcript prepared by Jason Snell at Six Colors, where you’ll also find additional charts.


Apple Q2 2022 Results - $97.28 Billion of Revenue

Apple has just published its financial results for Q2 2022. The company posted revenue of $97.28 billion. Apple CEO Tim Cook said:

“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” said Tim Cook, Apple’s CEO. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”

Expectations for Q2 2022

Apple didn’t provide guidance for Q2 2022, but going into today’s earnings call, Yahoo Finance reported the following analyst expectations::

The Zacks Consensus Estimate for revenues is currently pegged at $94.79 billion, indicating growth of 5.82% from the year-ago quarter’s reported figure.

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q2 2022 financial results.

Read more


Apple Q3 2021 Results - $81.4 Billion Revenue

Apple has just published its financial results for Q3 2021. The company posted revenue of $81.4 billion. Apple CEO Tim Cook said:

“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

Expectations for Q3 2021 and the Year-Ago Quarter (Q3 2020)

Apple didn’t provide guidance for Q3 2021, but going into today’s earnings call, Yahoo Finance reported the following analyst expectations::

Here’s what Wall Street is expecting from Apple, as compiled by Bloomberg, versus how it performed in the same quarter last year.

  • Revenue: $73.8 billion expected versus $59.7 billion in Q3 2020
    • Earnings per share: $1.01 expected versus $2.58 in Q3 2020
    • iPhone revenue: $34.5 billion expected versus $26.4 billion in Q3 2020

    • Services revenue: $16.3 billion expected versus $13.2 billion in Q3 2020

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q3 2021 financial results.

Read more


Apple Q2 2021 Results - $89.58 Billion Revenue

Apple has just published its financial results for Q2 2021. The company posted revenue of $89.58 billion. Apple CEO Tim Cook said:

“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Tim Cook, Apple’s CEO. “Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world. That certainly begins with products like the all-new iMac and iPad Pro, but it extends to efforts like the 8 gigawatts of new clean energy we’ll help bring onto the grid and our $430 billion investment in the United States over the next 5 years.”

Apple Beats Expectations

As reported by CNBC, Apple beat Wall Street expectations:

Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.

Apple stock rose over 4% in extended trading.

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q2 2021 financial results.

Read more


Apple Breaks Records with $111.4 Billion in Revenue for Q1 2021

Apple has just published its financial results for Q1 2021, with the company posting revenue of $111.4 billion. Apple CEO Tim Cook had this to say about the company’s record-setting quarter:

This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide. We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we’re a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.

Estimates and Expectations for Q1 2021

As was the case with Q4 2020, Apple did not provide financial guidance for Q1 2021 during its last earnings call due to the ongoing global pandemic. Nonetheless, reportedly strong iPhone sales and a flurry of new products late last year set high expectations among analysts.

Going into today’s call, Yahoo Finance said that:

The Zacks Consensus Estimate for revenues is currently pegged at $102.61 billion, indicating growth of 11.8% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings is currently pegged at $1.39 per share, unchanged over the past 30 days and indicating 11.2% growth from the figure reported in the year-ago quarter.

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q1 2021 financial results.

Read more


Apple Q3 2020 Results - $59.7 Billion Revenue

Apple has just published its financial results for Q3 2020. The company posted revenue of $59.7 billion. Apple CEO Tim Cook said:

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple’s CEO. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation. This is a challenging moment for our communities, and, from Apple’s new $100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it.”

Estimates and Expectations for Q3 2020 and the Year-Ago Quarter (Q3 2019)

Due to the uncertainty caused by the global pandemic, Apple did not provide financial guidance for Q3 2020 during its last earnings call.

Going into today’s call, Yahoo Finance said that:

Much of the earnings focus, however, will be on whether Cook and company will provide guidance for fiscal Q4, which could offer a hint about any potential delays to the launch of the firm’s upcoming iPhone 12.

Despite the lack of guidance, Yahoo Finance says that Bloomberg’s research shows that analysts expect the following results:

Revenue: $52.2 billion expected versus $53.8 billion in Q3 2019.

Earnings per share: $2.06 expected versus $2.18 in Q3 2019.

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q3 2020 financial results.

Read more


Apple Q2 2020 Results - $58.3 Billion Revenue 

Apple has just published its financial results for Q2 2020. The company posted revenue of $58.3 billion. Apple CEO Tim Cook said:

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” said Tim Cook, Apple’s CEO. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.”

Estimates and Expectations for Q2 2020 and the Year-Ago Quarter (Q2 2019)

Apple’s revenue guidance for Q2 2020 originally fell between $63.0 billion and $67.0 billion, with gross margin estimated to be between 38.0% and 39.0%, but in a press release issued on February 17, 2020, the company said it expected to miss that guidance due to iPhone supply constraints and lower demand in China resulting from the COVID-19 pandemic.

Going into today’s earnings call, Barron’s said:

The current Wall Street analyst consensus revenue forecast is $54.6 billion, but the estimates vary dramatically, with the low end of the Street range at $45.6 billion. The consensus profit forecast is $2.27 a share, but again, the range is wide, with estimates running from $1.73 to $2.73 a share.

In the year-ago quarter (Q2 2019), Apple earned $58 billion in revenue.

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q1 2020 financial results.

Read more