Apple beats on revenue and profit, expects growth to accelerate

Published

1 year ago

July 29, 2022

Ahron Young

Apple reported fiscal third-quarter earnings that beat Wall Street expectations for sales and profit

Analysts expect the company to earn $1.16 a share on sales of $82.8 billion.

That would translate to a year-over-year decline of 11% in earnings.

Apple’s revenue rose 2% during the quarter, compared to 36% growth during the same period last year and over 8% growth in the March quarter.

Here are the key numbers compared to what Wall Street was expecting:

EPS: $1.20 vs. $1.16 estimated, down 8% year-over-year
Revenue: $83 billion vs. $82.81 billion estimated, up 2% year-over-year
iPhone revenue: $40.67 billion vs. $38.33 billion estimated, up 3% year-over-year
Services revenue: $19.60 billion vs. $19.70 billion estimated, up 12% year-over-year
Other Products revenue: $8.08 billion vs. $8.86 billion estimated, down 8% year-over-year
Mac revenue: $7.38 billion vs. $8.70 billion estimated, down 10% year-over-year
iPad revenue: $7.22 billion vs. $6.94 billion estimated, down 2% year-over-year
Gross margin: 43.26% vs. 42.61% estimated

Three months ago, Apple warned that Covid-related shutdowns in China would negatively impact its June-quarter performance.

It also faces weakening consumer spending.

However, Apple’s stock has been rising ahead of its earnings report.

On the stock market today, Apple stock jumped 3.4% as investors waited for the earnings report.

Risks are rising for Apple but they already are reflected in AAPL stock price, Deutsche Bank analyst Sidney

Ho said in a note to clients this week. He rates AAPL stock as buy with a price target of 175.

Ho expects Apple to fare better than its peers despite a challenging environment.

“We believe the company has managed its supply chain better than it planned a quarter ago, while it continued to gain share in an otherwise difficult quarter for smartphones and PCs,” Ho said.

“Looking forward, we expect Apple’s outlook to lean more cautious to reflect the current environment.”

Tech giants drive global mega-cap surge amid inflation relief

Published

16 hours ago

December 1, 2023

ticker NEWS

Tech giants have taken the lead in propelling global mega-cap stocks to new heights.

This surge comes as a welcome relief for investors who have been closely monitoring the impact of rising inflation on the financial markets.

The tech sector, including giants like Apple, Amazon, and Microsoft, has been instrumental in driving the rally. These companies have reported robust earnings and strong growth prospects, which has boosted investor confidence. As a result, the market capitalization of these tech behemoths has reached unprecedented levels, contributing significantly to the overall rise in global mega-cap stocks.

The easing of inflationary pressures has played a pivotal role in this resurgence. Central banks’ efforts to tame inflation through monetary policy adjustments have begun to bear fruit, reassuring investors and stabilizing financial markets. As concerns over rapidly increasing prices recede, investors have become more willing to invest in mega-cap stocks, particularly in the tech sector, which has demonstrated resilience in the face of economic challenges.

Will the tech giants maintain their momentum and continue to lead the mega-cap surge, or are there potential risks on the horizon?

Money

Real reason bosses want employers back in the office

Published

2 days ago

November 30, 2023

ticker NEWS

As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

Money

Businesses cash in on Black Friday sales

Published

2 days ago

November 30, 2023

ticker NEWS

Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured