Apple & Google Q2 Earnings Results

Apple & Google Q2 Earnings Results
TradeGM Analysis date_range July 28th, 2021
google and apple logos

The Headlines

Apple

apple demolishes earnings

Key Points:

  • 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 

Source: https://www.cnbc.com/2021/07/27/apple-aapl-earnings-q3-2021.html

apple Q3 2021

Key Points:

  • 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.
apple earnings results table

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%.

Source: https://www.investopedia.com/apple-q3-fy2021-earnings-report-recap-5194361

Google

Google's digital ad sales

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.

Key Number:

  • 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.

Source: https://www.marketwatch.com/story/googles-wave-of-digital-ad-sales-helps-it-crush-revenue-earnings-estimates-11627417962

Google advertising revenue

Key Points:

  • 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.

Alphabet (Google) reported Q2 2021 earnings after the bell. The stock rose more than 3% after hours on the strong numbers, which crushed analyst expectations.

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

Source: https://www.cnbc.com/2021/07/27/alphabet-googl-earnings-q2-2021.html

alphabet (google) Q2 2021

Key Points:

  • 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.
alphabet (google) earnings results table

Source: https://www.investopedia.com/alphabet-google-q2-fy2021-earnings-report-recap-5194391

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X