Apple jumped 5% in after-hours trading following the release of solid earnings for Q4 2021. Company benefited from high iPhone demand in China and withstood constraints caused by supply chain disruptions and the omicron variant.
- Revenue jumped 11% YoY to $123.9 billion (exp. $118.66 billion) while EPS came in at $2.10 (exp. $1.89).
- iPhone revenue: $71.63 billion vs. $68.34 billion estimated, up 9% YoY
- Services revenue: $19.52 billion vs. $18.61 billion estimated, up 24% YoY
- Other products revenue: $14.70 billion vs. $14.59 billion estimated, up 13% YoY
- Mac revenue: $10.85 billion vs. $9.52 billion estimated, up 25% YoY
- iPad revenue: $7.25 billion vs. $8.18 billion estimated, down 14% YoY
- Gross margin: 43.8% vs. 41.7% estimated
Apple revenue breakdown. Source: Bloomberg via ZeroHedge
- "The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings," Chief Financial Officer Luca Maestri said in a news release.
- Maestri also said that the company was returning even more cash to shareholders: “These record operating results allowed us to return nearly $27 billion to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.” This is up from $24 billion last quarter.
- On the Q4 earnings call, CEO Tim Cook said Q1 2022 revenue would top Q1 2021 revenue of $111.4 billion. Company also sees considerable potential in the Metaverse space
- Cook said he expects supply chain constraints, which are contributing to inflation, to ease for Apple in the coming months due to ongoing work with suppliers.
- Company did not provide any official guidance for the current quarter in its news release. Apple hasn't provided specific quarterly financial guidance since the Covid-19 pandemic began in early 2020, citing uncertainty
Apple (AAPL.US) stock took a hit in recent days among broad sell-off of the technology sector. However sellers failed to break below the major support zone around $152.60 which coincides with 23.6% Fibonacci retracement of the upward move launched in March 2021 and long-term trendline. Recent news from China and upbeat quarterly results support stock price in today’s premarket trade. Source: xStation5
