Apple reported better-than-expected results last night, with the group surpassing estimates for both earnings and revenues. In its fourth quarter, Apple saw revenues come in at $52.6bn, beating forecasts of $50.7bn. Overall, the group reported adjusted earnings of $2.07 per share, much higher than estimates of $1.87 per share. Apple expects its revenues to grow for the first quarter of the next financial year to be between $84bn and $87bn, easily topping forecasts of $84.9bn. Apple also saw fit to declare a quarterly dividend of 63 cents per share.
On Tuesday, Apple shed 0.4% to settle at $160.86, despite falling as much as 2.5% earlier in the day. This comes after it group unveiled a number of new products, including three new iPhones, namely the iPhone 8, the iPhone 8 Plus and the iPhone X. The iPhone X, which dominated the headlines, will start at $999, which is significantly higher than other iPhone models. However, despite the new releases, the group’s shares were weighed down by a later-than-expected shipping date for its iPhone X. As it stands, orders for the iPhone X will only open in October, with shipping set to occur in November. Analysts are concerned the group will not meet sales targets for the last quarter.
Apple traded sharply higher in after-hours trade on Tuesday, buoyed by a strong set of results and healthy iPhone sales. During the quarter, which is typically the group’s weakest, it saw revenues come in at $45.41bn, higher than the $42.36bn reported a year ago and better than expectations of an increase to $44.89bn. This was partly due to 41mn iPhones being sold during the quarter, up from 40.4mn a year ago. Overall, adjusted earnings grew to $1.67 per share, beating estimates of an increase to $1.57 per share and sharply higher than the $1.42 per share recorded in 2016. The group declared a quarterly dividend of 63 cents per share.
On Monday, Foxconn’s Chairman, Terry Gou, confirmed in an interview that both Apple and Amazon would join the group’s bid for Toshiba Corp’s semiconductor business. As it stands, the two US technology behemoths were set to provide funds for the deal, although at this stage it was uncertain whether this would be in the form of a direct investment in the semiconductor unit or if it would be financing for the deal. Toshiba has decided to sell its semiconductor business, which is currently the second largest NAND chip maker, to cover billions of dollars of cost overruns at Westinghouse, the group’s now bankrupt US-based nuclear unit.
Apple released a mixed set of quarterly results last night. Firstly, the group reported a 4% increase in revenue to $52.9bn, which was slightly lower than estimates of an increase to $53.02bn. This miss was partly due to a surprise drop in the number of iPhone sales to 50.76mn, down from 51.19mn previously. Overall, Apple saw net income increase to $11.03bn, up from the $10.52bn reported in the previous corresponding period. On a per share basis, earnings came in at $2.10, beating estimates of an increase to $2.02 and higher than the $1.90 reported a year ago. This better-than-expected result was partly attributed to a solid gross margin of 38.9%, slightly higher than expectations of 38.7%. Apple fell 1.84% in after hours trading after moving up strongly ahead of the numbers.
Apple shed 0.23% during the regular session, but traded sharply higher in after-hours trade following the group’s results for the fiscal first quarter smashed estimates. For the period, Apple saw revenues come in at $78.4bn, up from the $75.9bn recorded a year ago and better-than-expectations of an increase to $77.25bn. This sharp increase was mainly due to an extremely strong quarter from its iPhone segment. Furthermore, services revenue, which includes revenue from the App Store, iTunes, Apple Music, Apple Pay and iCloud, stood at $7.17bn, higher than an expected figure of $6.91bn. Lastly, Apple recorded earnings of $3.36 per share for the quarter, easily surpassing estimates of $3.21 per share.
Over the weekend, reports surfaced that Apple is set to launch a legal challenge against its $14bn tax penalty from EU regulators. In its opinion, EU regulators ignored tax experts and corporate law instead opting to maximise the penalty. This comes after the European Commission announced on the 30th of August that the group’s Irish tax deal was illegal and ordered the technology giant to repay €13bn, or $13.8bn, to the Irish government. As it stands, Apple is set to lodge an appeal against the ruling in Europe’s second highest court.
Over the weekend, news reports surfaced confirming, for the first time, Apple has plans to develop a self-driving car. This comes after a letter to an official at the US National Highway Traffic Safety Authority (NHTSA) was released, indicating that Apple was excited about the potential of automated systems in many areas, including that of transportation. In its letter, Apple wanted the NHTSA to force companies to share crash data and near-misses in order to speed up development. Despite announcing in October that it had abandoned its car plans, the remaining members of the Apple Car team have allegedly been focusing on autonomous systems rather than a full car.
On Tuesday, Apple released its results for its fiscal 4th quarter, with the group beating expectations for earnings, while revenues were in-line with estimates. For the quarter, the group recorded revenues of $46.9bn, slightly lower than expectations of $46.94bn, but much lower than the $51.5bn reported a year ago. As a result, this marks the 3rd straight quarter that Apple has posted a year-over-year decline in revenue, partly due to a 5% drop in iPhone shipments. On the upside, adjusted earnings came in at $1.67 per share, sharply lower than the $1.96 per share reported a year ago, but marginally better than estimates of a decline to $1.66 per share.
On Wednesday, Apple shed 0.02% to close at $113.55 per share, after declining more than 1% earlier in the session. It proved to be an eventful day for the group, after rumours broke it was looking at a potential strategic takeover of McLaren, the Formula One team owner and supercar maker. This comes after Apple hired dozens of automotive experts over the last few years, indicating it may be working on a self-driving car. However, following the speculation, McLaren released a statement whereby they announced that the group was definitely not in discussions with Apple regarding a potential investment.