Apple gains 0.60% after quarterly results 🟢

Apple slightly gains in after-hours trading following the results for the third quarter of 2024. The company reported a 5% increase in revenue for the third fiscal quarter of 2024, reaching $85.8 billion, compared to $81.8 billion in the same period last year. This growth was driven by a significant increase in earnings from the services segment and a 24% increase in iPad sales, which helped offset the decline in iPhone sales in China. The company posted a net income of $21.4 billion, up 8% from the previous year, and earnings per share of $1.40, exceeding the consensus estimate of $1.35. Apple also announced a dividend of 25 cents per share.

Key financial data:

• Revenue: $85.8 billion
  • Up 5% year-over-year from $81.8 billion in Q3 2023
  • Beat analysts' expectations of $84.5 billion
• Net income: $21.4 billion
  • Up 8% year-over-year from $19.9 billion in Q3 2023
• Earnings per share (EPS): $1.40
  • Up 11% year-over-year from $1.26 in Q3 2023
  • Beat analysts' expectations of $1.35

Segment results:

• iPhone sales: $39.3 billion
  • Slight decline from $39.7 billion in Q3 2023
• iPad sales: $7.2 billion
  • Up 24% year-over-year
• Services revenue (App Store, Apple Pay, etc.): $24.2 billion
  • Up from $21 billion in Q3 2023

Regional results:

• Revenue in China: $14.7 billion (nearly $1 billion less than expected)
  • Down 7% from $15.8 billion in Q3 2023

Internationally, Apple had a challenging quarter, especially in China, where revenue fell 7% to $14.7 billion from $15.8 billion a year earlier. The main reasons were competitive pressure from local phone manufacturers and government restrictions. Despite the decline in China, the company experienced growth in other regions, particularly in India. Apple's services business, including the App Store and Apple Pay, saw strong growth, reaching $24.2 billion, compared to $21 billion the previous year.

Apple remains optimistic about its AI-related projects. The introduction of "Apple Intelligence" and the beta version of iOS 18.1 with enhanced artificial intelligence is expected to shorten the iPhone upgrade cycle and increase sales. Additionally, the company's Vision Pro mixed reality headset has already been launched in several international markets. CEO Tim Cook and CFO Luca Maestri emphasized the company's commitment to innovation and customer satisfaction, looking optimistically at the upcoming quarters.

Source: xStation 5