Apple Inc saw its stock dip by as much as 2% in pre-market trading on Friday, following the release of its fiscal fourth-quarter (Q4) earnings report. The tech giant exceeded Wall Street expectations, reporting earnings per share of $1.46 on revenue of $89.5 billion. Analysts had anticipated earnings per share of $1.39 on revenue of $89.3 billion, according to Bloomberg estimates.
At the time of this publication, Apple Inc stock (AAPL) has witnessed a decline.
Apple Inc
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This marks the fourth consecutive quarter in which Apple’s revenue has declined compared to the same period in the previous year. Despite the overall positive performance, a cautious outlook for the current quarter weighed on investor sentiment.
The Q4 earnings report ofApple revealed robust iPhone sales, totaling $43.8 billion, surpassing expectations and setting a new record for iPhone sales in the fiscal fourth quarter. Additionally, the company’s Services segment achieved a milestone, generating revenue in excess of $22 billion for the first time. However, revenues from the Mac, iPad, and Wearables categories experienced a decline compared to the same quarter last year.
For the entire fiscal year, Apple reported total revenue of $383.3 billion, a decrease from $394.3 billion in the previous year. During a call with analysts discussing the results, Apple’s Chief Financial Officer, Luca Maestri, stated that revenue for the current quarter is expected to be “similar” to the previous year. Maestri also indicated an anticipated significant deceleration in revenue for the Mac, iPad, and Wearables categories from the fourth quarter.
Wall Street analysts had previously forecasted revenue of $122.8 billion for the current quarter, as reported by Bloomberg. In contrast, Apple’s revenue for the December quarter of the previous year amounted to $117.2 billion.
In an interview with Yahoo Finance, Maestri attributed the expected decline in Mac sales to market conditions and described the comparisons with the previous year as “very difficult.” He added that Apple continues to attract new buyers to the Mac, noting that “about half of buyers were new to the product in the quarter.”
Within its iPhone segment, Apple anticipates revenue growth in the current quarter compared to the previous year. The company’s latest results highlighted its home market, with sales in the Americas region experiencing year-over-year growth, distinguishing it as the only major geography to achieve this.
Key metrics from Apple’s fourth quarter compared to Wall Street expectations, compiled by Bloomberg, include:
– Revenue: $89.5 billion versus expected $89.34 billion ($90.15 billion in Q4 2022)
– Adjusted Earnings Per Share (EPS): $1.46 versus expected $1.39 ($1.29 in Q4 2022)
– iPhone revenue: $43.8 billion versus expected $43.73 billion ($42.63 billion in Q4 2022)
– Services revenue: $22.3 billion versus expected $21.36 billion ($19.19 billion in Q4 2022)
– Mac revenue: $7.6 billion versus expected $8.76 billion ($11.51 billion in Q4 2022)
– iPad revenue: $6.4 billion versus expected $6.33 billion ($7.22 billion in Q4 2022)
– Wearables revenue: $9.3 billion versus expected $9.41 billion ($9.65 billion in Q4 2022)
This report comes shortly after Apple’s unveiling of its latest MacBook Pro lineup and updated iMac during its “Scary Fast” virtual event on the eve of Halloween. Despite exceeding Wall Street expectations and achieving record highs in key segments, Apple’s cautious outlook for the current quarter has tempered investor enthusiasm. Notably, revenues from the Mac, iPad, and Wearables categories are expected to experience a significant deceleration compared to the fourth quarter. The standout performance in the Americas region remains a highlight, with revenue growth year-over-year.
Source: Yahoo Finance
