9 ms·
Apple Reports Record Third Quarter Results
- abhigupta 11y agoStock is already down 6.31% in aftermarket! Geez
- CardenB 11y agoIs there a reason why stock would drop so much? Did they fail to hit some target?
- Ecco 11y agoNo Apple Watch numbers = lousy start
- callumjones 11y agoApple never said they would be breaking out the numbers for the watch.
- guywithabike 11y agoThey explicitly stated in the last earnings call that they would not break out Apple Watch sales separately for competitive reasons.
- frinxor 11y agoexpected 49-51b revenue. rev was at 49.6. i think aapl has been beating rev estimates for a while, while this one was right in the low end of expected edit: was incorrect on my numbers. spiralpolitik: Expected revenue for Q3 was 46-48b (see Q2 earnings press release). So they beat the estimate by 1.6 billion. The 49-51b number is the Q4 estimate.
- luso_brazilian 11y agoFrom the press release (emphasis mine): The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. (...) Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. Investor conclusion: Apple is not doing so well. There is something wrong with the stock market when a company post record profits, almost 40% margin (on electronics) and that's seen as an omen. I understand it is the opposite, brokers bet earlier that the results would be even better and are now unloading the bets at a lower price (causing the market correction) but even so it is amazing how detached stock brokerage is from investment and how close it is from gambling.
- airza 11y agoPart of the value of the stock is expected returns, and if the expected returns suddenly change than the value of the stock will suddenly change too. I don't think that it's necessarily an omen.
- forgetsusername 11y ago>but even so it is amazing how detached stock brokerage is from investment and how close it is from gambling. Funny, I reach the exact opposite conclusion: people were willing to pay a specific price for Apple dependent on the expectations of future earnings. Those earnings didn't meet expectations, therefore the market adjusted the price. Working as intended.
- spiralpolitik 11y agoExpected revenue for Q3 was 46-48b (see Q2 earnings press release). So they beat the estimate by 1.6 billion. The 49-51b number is the Q4 estimate.
- ajross 11y agoThey missed revenue estimates by a mile. This is why serious stock watchers tend to prefer links to industry analysis and not press releases.
- spiralpolitik 11y agoExpected Q3 revenue was 46 billion to 48 billion as per the Q2 earnings press release. They earned 49.6 billion so beat the estimate by 1.6 billion. Or are saying they missed the estimate that some analyst pulled out of their ass ?
- arrrg 11y agoAnalysts on average actually did better in predicting Apple’s revenue than Apple. (Apple obviously seems to be very conservative in their predictions, though.)
- ajross 11y agoThe analysts' recta have historically been much more accurate than Apple's press releases, which have (as is not atypical in the tech industry) routinely and severely underestimated revenue.
- arrrg 11y agoThat is completely incorrect. They are right in the middle of revenue predictions. Slightly on the lower end, sure, but that does not qualify as missing by a mile. If you say missing by a mile I would expect at least one standard deviation. Here is a spreadsheet of analyst predictions: http://fortune.com/2015/07/21/apple-earnings-expectations-q3/ http://fortune.com/2015/07/21/apple-earnings-expectations-q3... They range from $48b to $53b.
- JonFish85 11y agoStock tends to over-react in after-hours trading, I think. I don't do any after-hours trading, but it seems like it usually settles in someplace before market open the next day. I'm not saying it will or anything, but that seems to happen immediately after an earnings report is dropped.
- kumarm 11y agoBelow expectations (Previous Quarter results and current quarter projections): Here's what analysts are expecting, via the Bloomberg Terminal. Revenue: $49.4 billion EPS: $1.81 iPhone units: 48.8 million (whisper number is 50 million) iPad units: 10.9 million Mac units: 4.9 million Revenue guidance: $51.06 billion
- arrrg 11y agoAt most very slightly below, right? Revenue and EPS are actually better in their earnings report. The only thing that’s worse is that they sold 1.3 million fewer iPhones and .1 million fewer Macs. iPads are right on. Revenue guidance is $49b to $51b.
- eridius 11y agoThis always happens with Apple, although I admit that 6.31% is a bit on the high side. In general, Wall Street doesn't act the slightest bit rationally around Apple. No matter how record-breaking Apple's numbers are, there's always some insane analyst that projected even higher numbers, which means everybody then reports Apple as a "miss" (even though they always beat their own estimates, and meet or beat all of the sane analyst predictions, which is most of them). And since it's a "miss", stock drops. Really, what's more shocking is those very rare times when the stock climbs after-hours after an earnings report (or after the WWDC keynote or the annual September event).
- obblekk 11y agoThis makes it clear that Apple Watch isn't the kind of category creator like iPhone, but rather like Apple TV.
- serve_yay 11y agoHow so?
- jstsch 11y agoLook in the data summary (PDF below). "Other Products" which includes the Apple Watch grew 'only' a billion year over year. http://images.apple.com/pr/pdf/q3fy15datasum_2.pdf http://images.apple.com/pr/pdf/q3fy15datasum_2.pdf
- aetherson 11y agoSo I'm maybe missing something, but Other Products 2014 didn't include Beats headphones sales, right? Because the acquisition didn't happen until Aug 1, 2014? And Other Products 2015 explicitly does include Beats Electronics. And wikipedia (https://en.wikipedia.org/wiki/Beats_Electronics https://en.wikipedia.org/wiki/Beats_Electronics) says that Beats revenue in 2013 was $1.5 billion. If all that is right -- and it may not be -- then that implies that Beats + Apple Watch < $1b revenue, which would indicate that something is very wrong. Indeed, it would imply that something is SO wrong that I doubt I have the facts above correct. EDIT: Duh, thanks thedaveoflife, obviously the $1.5b for 2013 Beats is an annual number, not a quarterly one. And of course the iPod numbers are presumably shrinking. That explains it.
- deleted 11y ago[deleted]
- thedaveoflife 11y agoBeats had $1.5 Billion in annual revenue in 2013. Beats + Apple Watch were < $1b revenue in Q3 alone.
- chollida1 11y agoApple's suppliers: AVGO, CRUS, INVN, NXPI and SWKS are also being hammered. Possible trading strategy here, trade the suppliers, and main games makers on apple results?
- obblekk 11y agoThis is a good strategy if you want to trade parts of the Apple earnings report. For example, INVN is barely down at all while Apple is down >7%, implying that whatever component INVN supplies is still in demand by Apple (i.e., that part of their earnings were not bad).
- robbintt 11y agoINVN supplies the MPU6050 IMU common to most smartphones. It's a really high quality combined accelerometer and gyroscope. Samsung also uses tons of these. Furthermore these will likely be in everything, and they are tiny. They use a really interesting mechanical technology combined with on-chip kalman filters. edit: http://www.invensense.com/products/motion-tracking/6-axis/mpu-6050/ http://www.invensense.com/products/motion-tracking/6-axis/mp...
- jstsch 11y agoWow. Will next year China be a bigger share of the revenue than the entire Americas?
- randomname2 11y agoActually in China the Apple euphoria appears to have ended, Greater China sales fell by 21% from $16.8 billion to $13.2 billion, which is part of the reason AAPL stock is currently down 7%.
- puranjay 11y agoWasn't that due to the Chinese New Year last year?
- hebdo 11y agoShouldn't new year be every year?
- jstsch 11y agoYou shouldn't compare Q3 2015 to Q2 2015, but to Q3 2014. Otherwise seasonal effects and things like product launches play too big a role. The iPhone 6 has been out for some time, for instance. Sales of that taper off a bit after release.
- seanmcdirmid 11y agoThis oh this. The Chinese market has its own holiday season, why would you compare Q1 to Q2?
- charlesarthur 11y ago"Greater China sales fell by 21% from $16.8 billion to $13.2 billion" That's reading sequential quarters, which pretty much nobody in finance (who wants to be taken seriously) does, because it overlooks seasonal factors. The year-on-year figure (which serious financial people do use) is up over 100% from $5.9bn. The stock market maybe is concerned that China is too important and that if its stock market is plunging, so will sales of Apple stuff.
- curiousjorge 11y agohttps://www.estimize.com/aapl https://www.estimize.com/aapl it's pretty amazing how spot on the estimates are to the actual figures for AAPL compared to other stocks. The reason it's down is probably because there was no surprise and the numbers came a bit shy of what the estimates were but regardless, I view it as an overreaction. My long term outlook on iPhone and Apple is positive, they've essentially established a monopoly on the luxury market segment which is always a growing market with fat margins while Samsung is feeling the squeeze from Chinese phone makers undercutting them (http://www.usatoday.com/story/tech/personal/2014/10/07/samsung-quarterly-profit-down/16861445/ http://www.usatoday.com/story/tech/personal/2014/10/07/samsu...), it has a similar tone to giants that have fallen (Motorola, Nokia failed to stay relevant after increased market entrants that ate into their margins). Samsung's immediate response will be to continue to spend big bucks on R&D since they can't copy Apple anymore while nothing stops Chinese companies from copying Samsung (as Korean conglomerates behave ruthlessly on it's home turf, so do the Chinese) and reaping the benefits of piggybacking. Also growing wages and demand for increased social welfare in Korea evidenced by the foul cry over the recent merger of Samsung's holding companies, screwing over it's investors and seriously putting a smear on South Korea's corporate governance, market trust is low (message is clear, if you invest in Korea, you can't fight the powerful conglomerate families or the government which share the same bed, see Morningstar) from the failure of government to lay down the law (so much for President Park's promise to reign in the Chaebols or conglomerate families). The downfall of Samsung might play right into Apple's hands if they launch a surprise attack and release a phone in this segment with cheaper hardware but with the same good software. Considering Samsung has a repeated history of copying market innovators, undercutting to win significant market share, and dragging out the legal process until finally settling, failure to break into the luxury market will be the downfall for Samsung's phones in an increasingly decreasing margin game. All of this is great for Apple. edit: Someone accuses me of being an Apple fanboy when I'm an Android user happy with his Motorola phone, I don't see why that changes anything. Sent from my Android phone.
- brokentone 11y agoIMHO there is an incentive for wall st to be a bit cautious on their estimates (better to beat, then everyone is happy, vs a miss in which a huge pullback occurs and the analysts are questioned). There is not the same incentive on estimize. 9/10 estimize's estimates are slightly higher than the street, which more often than not is correct.
- deleted 11y ago[deleted]
- deleted 11y ago[deleted]
- danielrakh 11y agoNo Apple Watch sales numbers revealed. They obviously sold millions on launch but I believe they don't want to set expectations too high by revealing the number until they see next quarters results. Making the overhyped launch sales the de facto benchmark will hurt the stock in the future because it will be a tough number to top. The more likely scenario will be that they'll wait till the year is over and come out with an average sales number for the year.
- Jerry2 11y agoApple Watch is on a steeper trajectory than iPhone and iPad were. >The Apple Watch has sold more units in the first nine weeks following its launch than either the iPhone or iPad did at the same point after their respective releases, Apple CFO Luca Maestri said on Tuesday. [1] [1] http://appleinsider.com/articles/15/07/21/apple-watch-sales-beat-iphone-ipad-through-9-weeks-cfo-luca-maestri-says http://appleinsider.com/articles/15/07/21/apple-watch-sales-...
- danielrakh 11y agoI believe thats mostly due to the combination of the hype surrounding the release of Apple's latest product line, and the fact that Apple has A LOT more potential customers paying attention to it than it did when it launched the iPad and definitely when it launched the iPhone.
- __APPL__ 11y agoAlso Apple launched the iWatch in more countries than the iPhone and iPad, including China (their second biggest market). The iWatch demand and initial sales will be more front loaded than the iPhone and iPad
- aetherson 11y agoAlso: the aWatch is cheaper than either the iPhone or the iPad was at launch (both cost $500 for the cheapest model, as opposed to $350 for the watch).
- 11y ago
- randomname2 11y agoThe EPS, revenue and margine may have beat but when looking into the details of the overall results they do not look good at all. 47.5 million iPhone shipments missing expectations by 1.3 million units, even with both iPad (whose ASP came at $415 below the $426 expected), and Mac units coming in as expected. Greater China sales tumbling by 21% from $16.8 billion to $13.2 billion, in the quarter when the Composite was hitting multi year highs, and the July crash was not even on the horizon. Guidance now sees Q4 revenue at $49-$51 billion, or below the $51.1 bn consensus estimate, with a warning about the strong dollar. And all this happened in a quarter in which they bought back $10 billion of its own stock. In after hours AAPL seems to be down 7% as a result of all this. Which is worrying considering how big of a part of the overall market they are.