No. of Recommendations: 4
From the Nov 2 earnings call...
Sales:
Slight decline of 1%: Their total revenue reached $89.5 billion, falling just short of the previous year's figure.
Notable variations by product: While iPhone sales grew modestly by 2%, the wearables category and Greater China sales (including Hong Kong and Taiwan) experienced declines.
Earnings:
Positive growth of 13%: Net income reached $22.96 billion, exceeding the previous year's $20.72 billion. This translates to $1.46 earnings per diluted share, compared to $1.29 in the previous year.
Apple doesn't traditionally provide specific guidance for future sales and earnings during its earnings calls.
Overall tone:
Tim Cook, CEO of Apple, expressed positive sentiment about the company's future, highlighting strong momentum in several key areas like wearables and services. He emphasized their commitment to innovation and their confidence in their product pipeline.
Growth areas:
Cook specifically mentioned wearables as a category with "very strong double-digit year-over-year growth" and significant potential for further expansion. Services segment, including App Store, Apple Music, and iCloud, was also highlighted as a major driver of future growth. Continued focus on emerging markets like India and Southeast Asia was mentioned as another potential avenue for expansion.
While exact numbers for future sales and earnings weren't provided, the overall tone and specific areas of focus suggest confidence in continued growth, particularly in wearables and services.
Analysts generally project moderate revenue growth for Apple in the coming quarters, ranging from 2-5%.
However, uncertainties remain regarding factors like global economic conditions and potential product delays due to supply chain issues.
If you are a Warren Buffett fan, note that in the latest 13F filing by Berkshire Hathaway, shares in Apple have remained constant (none sold) in the latest quarter. Berkshire holds 915 millions shares of AAPL, which is 48% of its entire equity holdings. This is a tremendous amount of conviction in the company.
