Apple beats earnings during tech stock meltdown, but outlook cautious
Apple on Thursday reported quarterly sales and profit that narrowly exceeded estimates as the company managed to weather a variety of economic headwinds.
Why it matters: The report comes as a number of large tech companies have issued dour outlooks amid signs of a significant slowdown.
The company reported per-share earnings of $1.29, up 4% and 2 cents better than some analysts had expected.
- Revenue was $90.1 billion, up 8% and ahead of consensus analysts estimates of around $89 billion.
Yes, but: iPad sales dropped significantly from a year ago and the iPhone and services revenue numbers were less than some had hoped, CNBC said.
- “We are still living through unprecedented times,” CEO Tim Cook said on a conference call with analysts, pointing to economic challenges, war in Ukraine, COVID-19 and climate-related crises. "The world continues to be unpredictable."
- The company did not give specific financial guidance for the current quarter but said it does expect slower year-over-year growth than it saw in the just-reported quarter. CFO Luca Maestri also forecast that Mac revenue will "decline substantially year over year" amid a strong dollar and a tough comparison versus last year, when the company introduced new MacBook Pros.
- Cook did say that chip shortages were no longer a significant factor this quarter.
By the numbers:
- iPhone revenue: 42.6 billion
- Mac revenue: $11.5 billion
- iPad revenue: $7.2 billion
- Wearables and accessories revenue: $9.6 billion
- Services revenue: $19.2 billion
What they're saying: "Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop,” Maestri said in a statement.
- A strong dollar was partly to blame for lower-than-expected services revenue growth, but Maestri told analysts that the company also saw some decreased demand for online advertising and gaming.