In a surprising turn of events, Apple Inc. (AAPL) has outperformed all expectations in its recently released Q4 earnings report. The tech giant’s performance in this quarter marks a significant milestone, but there are still questions about what lies ahead for the company and its shareholders.
Apple’s Q4 Earnings Highlights:
- Earnings Per Share (EPS): Apple’s EPS for the quarter came in at a remarkable $1.46, surpassing the projected $1.39, according to FactSet analysts.
- Revenue: The company reported sales totaling an impressive $89.5 billion, exceeding the expected $89.3 billion.
- Year-Over-Year Growth: Apple experienced a notable 13% increase in annual profit, despite a 1% decrease in overall sales.
Sales Decline Streak Continues:
This marks the fourth consecutive quarter in which Apple has faced a decline in sales, raising questions about the company’s strategies and future prospects.
Q4 Sales Breakdown:
- Hardware: Apple’s hardware sales saw a 5% decline YoY, dropping to $67.2 billion.
- Services: On a positive note, the company’s services division witnessed a robust 16% growth, reaching $22.3 billion in revenue.
Stock Performance:
Following the earnings report, Apple’s shares experienced some turbulence. The stock declined by 0.6% to $176.49 after the market closed. However, during the regular trading session on Thursday, Apple’s shares surged by 2.1% and closed at $177.57.
Apple’s CFO, Luca Maestri, noted, “Throughout the September quarter, our business results led to double-digit earnings per share (EPS) growth, and we returned nearly $25 billion to our shareholders while continuing to invest in our long-term growth plans.”
Apple’s Q4 Product Sales:
- iPhone Revenue: Apple’s iPhone sales revenue increased by 3%, reaching $43.8 billion, accounting for nearly half (49%) of the company’s total sales in Q4.
- Mac Computers: Sales of Apple’s Mac computers experienced a significant drop of 34%, with revenues totaling $7.6 billion.
- iPad Sales: iPad sales also saw a decline of 10%, with revenues of $6.4 billion.
- Wearables, Home, and Accessories: This division’s revenue decreased by 3%, amounting to $9.3 billion in the September quarter.
What’s on the Horizon:
Apple recently unveiled a range of new Mac computers featuring its latest M3 processor. The introduction of updated iMac desktops and MacBook Pro laptops signifies the company’s commitment to innovation and growth.
Apple’s Stock Rating:
According to IBD Stock Checkup, Apple’s shares have achieved an impressive aggregate IBD rating of 83 out of 99. The IBD Composite Rating, which combines various proprietary ratings into a single, user-friendly score, highlights the company’s strong market position.
Stay Informed:
For the latest insights on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on X (formerly Twitter) at @IBD_PSeitz.
As Apple charts its course for the future, investors and tech enthusiasts are eagerly watching to see what lies ahead for the iconic company.
