For the first time this year, a key indicator of sentiment in the oil market has gone negative.
- Apple reported strong fiscal third-quarter earnings on Tuesday, demolishing Wall Street expectations.
- Every one of Apple’s major product lines grew over 12% on an annual basis.
- iPhone sales increased nearly 50% on an annual basis.
- Despite the strong quarterly results, Apple shares fell after executives warned that chip supply constraints could impact iPhones and iPads this quarter.
Overall, Apple’s sales were up 36% from the June quarter last year. iPhone sales increased nearly 50% on an annual basis.
Apple stock was down over 2% in extended trading. It dropped on Tuesday after Apple warned on its earnings call growth in the September quarter would not be as strong as June’s.
EPS: $1.30 vs. $1.01 estimated
Revenue: $81.41 billion vs. $73.30 billion estimated, up 36% year-over-year
iPhone revenue: $39.57 billion vs. $34.01 billion estimated, up 49.78% year-over-year
Services revenue: $17.48 billion vs. $16.33 billion estimated, up 33% year-over-year
Other Products revenue: $8.76 billion vs. $7.80 billion estimated, up 40% year-over-year
Mac revenue:$8.24 billion vs. $8.07 billion estimated, up 16% year-over-year
iPad revenue: $7.37 billion vs. $7.15 billion estimated, up 12% year-over-year
Gross margin: 43.3% vs. 41.9% estimated
- Apple’s services revenue surpassed analyst estimates.
- Profit margins on the company’s services revenue are much larger than on revenue generated through product sales.
- iPhone sales rose 49.8% compared to the year-ago quarter.
Earnings per share (EPS) came in well above expectations, doubling from the year-ago quarter. Revenue also exceeded analyst forecasts by a wide margin, rising 36.4% year over year (YOY) to a record high for the June quarter.
Apple’s services revenue beat analysts’ estimates. The company’s shares were up slightly in after-hours trading. Over the past year, Apple’s shares have provided a total return of 55.9%, well above the S&P 500’s total return of 35.9%.
Google parent Alphabet Inc.’s stock jumped more than 3% in extended trading Tuesday after it reported advertising sales that shot its revenue and earnings well past analysts’ estimates.
The search-engine giant GOOGL, -1.59% GOOG, -2.04%, turbocharged by digital advertising, reported net income of $18.53 billion, or $27.26 a share, in its fiscal second quarter, compared with net income of $6.96 billion, or $10.13 a share, in the same quarter last year.
- Revenue after removing traffic-acquisition costs ($10.93 billion) jumped to $50.95 billion from $31.6 billion in the year-ago period. Overall revenue soared 62% to $61.9 billion. It is the first time Alphabet has cracked $60 billion in quarterly sales.
- Analysts surveyed by FactSet had estimated net income of $19.24 a share, on ex-TAC revenue of $56.2 billion.
- Of special note, Alphabet’s operating margin improved to 31% in the quarter, vs. 17% in the same quarter a year ago.
- Alphabet crushed Wall Street’s expectations as it saw dramatic advertising growth amid the pandemic bounce-back.
- YouTube revenue came in over $7 billion, up 83% from last year, drawing close to Netflix’s quarterly revenue, which was $7.34 billion.
- The stock rose more than 3% in after-hours trading.
Earnings per share (EPS): $27.26 vs $19.34 per share
Revenue: $61.88 billion vs $56.16 billion
YouTube advertising revenue: $7.00 billion vs $6.37 billion expected
Google Cloud revenue: $4.63 billion vs $4.40 billion expected
Traffic acquisition costs (TAC): $10.93 billion vs $9.74 billion expected
- Google Cloud revenue surpassed analyst estimates.
- Google Cloud is one of Alphabet’s primary business segments. It provides developers with a cloud platform for building, testing, and deploying applications.
- Google advertising revenue rose 68.9% compared to the year-ago quarter.
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