Yesterday, 5:35 PM
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Tue, Apr. 26, 6:11 PM
- The smartphone market isn't currently growing due to macro headwinds, says Tim Cook on Apple's (NASDAQ:AAPL) FQ2 call. "This too shall pass," he insists. Apple once more blames tough Y/Y comps (i.e. strong year-ago iPhone 6 sales), macro, and forex for sales growth pressures. (live blogs, BI, MarketWatch).
- Cook adds the Apple Watch's sales during its first 12 months of availability topped the iPhone's sales during its first 12 months (5.4M, per Statista). As usual, no specific Watch sales figure is given. Watch sales are expected to be very seasonal, with ~40% coming in calendar Q4. IDC estimates Watch shipments totaled 11.6M in 2015.
- "We added more switchers from Android in the first half of this year than in any other 6-month period ever," Cook asserts. He also notes a survey stating 78% of corporate buyers want iPhones. Regarding India, he declares the country is "where China was 7-10 years ago." As for China (FQ2 sales -26% Y/Y to $12.5B), he thinks the market is "not as weak as been talked about."
- CFO Luca Maestri says iPhone ASP (affected by the SE) will drop again in FQ3, and that the SE will impact margins. He asserts App Store growth fueled the 20% Y/Y increase seen in Apple's services revenue (to $6B). Also helping: Apple Music subscribers have topped 13M, up from 11M in February. The average amount spent by App Store customers is said to have hit a record in FQ2.
- Also mentioned: 1) Cook says the upgrade rate for the iPhone 6S cycle is above that for the 5S cycle, but lower than that for the 6 cycle. 2) Forex had a 400 bps impact on revenue growth (-13% Y/Y vs. -9%). 3) 15 companies have been acquired over the last 4 quarters. Notably, Cook suggests Apple is open to making a larger acquisition than the ones it has made in the past. The $3B Beats deal is Apple's largest to date.
- AAPL -8.2% after hours to $95.85.
- Apple's results/guidance, FQ2 details/dividend announcement,
Tue, Apr. 26, 4:59 PM
- Apple (NASDAQ:AAPL) had an FQ2 gross margin of 39.4%, down 140 bps Y/Y but within a 39%-39.5% guidance range. FQ3 GM guidance is at 37.5%-38%.
- Product line performance: iPhone revenue (65% of total revenue) -18% Y/Y to $32.9B; units -16% to 51.2M. iPad revenue -19% to $4.4B; units -19% to 10.3M. Mac revenue -9% to $5.1B; units -12% to 4M. Services revenue (iTunes, App Store, Apple Music, AppleCare, Apple Pay) +20% to $6B. Other products (Apple Watch, Apple TV, Beats, iPod) +30% to $2.2B.
- Regional performance: Americas revenue -10% Y/Y to $19.1B. Europe -5% to $11.5B. Greater China -26% to $12.5B. Japan +24% to $4.3B. Rest of Asia-Pac -25% to $3.2B. International sales were 67% of revenue.
- ASPs: iPhone ASP fell to $642 from FQ1's $691 and FQ4's $670 (iPhone SE pressure?). iPad ASP fell to $428 from FQ1's $439 and FQ4's $433. Mac ASP was $1,266 vs. $1,270 in FQ1 and $1,205 in FQ4.
- Financials: Repurchases of common stock totaled $6.6B. GAAP SG&A spend fell 1% Y/Y to $3.42B. R&D spend (boosted by car R&D?) rose 31% to $2.51B. Apple ended FQ2 with $233B in cash/investments (much of it offshore) and $77B in debt/commercial paper.
- Dividend: Apple has declared a $0.57/share quarterly dividend, up from a prior $0.52/share and good for a 2.4% yield at current after-hours levels. The dividend is payable on May 12 to shareholders on record as of the May 9 close.
- Tim Cook: "Our team executed extremely well in the face of strong macroeconomic headwinds." Apple says it plans to continue tapping U.S. and foreign debt markets to help fund capital returns.
- AAPL now -7.1% after hours to $96.92. Earnings call starts at 5PM ET (webcast).
- Apple's results/guidance, earnings release
Tue, Apr. 26, 4:34 PM
- Apple (NASDAQ:AAPL): FQ2 EPS of $1.90 misses by $0.10.
- Revenue of $50.6B (-12.8% Y/Y) misses by $1.37B.
- 51.2M iPhones (slightly above expectations), 10.3M iPads (above expectations), 4M Macs (below expectations).
- Expects FQ3 revenue of $41B-$43B, below a $47.32B consensus.
- Buyback authorization increased to $175B from $140B. Quarterly dividend hiked by 10% to $0.57/share. Total capital return program upped by $50B; Apple plans to spend a cumulative $250B through the program by the end of March 2018. $163B has been spent through the program as of March 2016.
- Shares -4.8% after hours.
- Press Release
- Update: Apple finished after-hours trading down 7.9%. Earnings report details can be found here.
Tue, Apr. 26, 4:12 AM
- Apple (NASDAQ:AAPL) is due to disclose its FQ2 earnings after the bell today, with analysts expecting the company to report that revenue slumped 10.4% to $52B in what would be the firm's first on-year sales drop in 13 years.
- EPS is estimated to have fallen to $2 from $2.33.
- Declining iPhone sales are believed to have hurt earnings, with Seeking Alpha author Mark Hibben writing that "iPhone SE and the 9.7 inch iPad Pro probably arrived too late in the quarter to have much impact."
- There are also fears that iPhone volumes will underwhelm this quarter as well.
- IDC's Ryan Reith notes that the overall smartphone market is slowing."Apple has had ridiculous growth where they have outpaced the market and that has to change at some point," Reith says.
- Now read: Apple And Q2 Results: Still A Tough Road For Watch and Apple: Nerves Increase As Earnings Approach
- See also: Apple Watch debut-year sales double iPhone in its first year
Mon, Apr. 25, 5:35 PM
- AAPL, AFL, AIZ, AKAM, ARAY, ARI, ASH, AXS, BEAT, BLDP, BRX, BWLD, BXMT, BXP, BYD, CHRW, CINF, CLMS, CMG, COF, CREE, CRUS, CUDA, CVA, EBAY, EEFT, EQR, EW, EXAC, FE, FOE, FSP, FTI, FTNT, HAWK, HIW, HLS, HUBG, IRBT, ISIL, JBSS, JBT, KLAC, MKTO, MRCY, MTSI, MWA, NANO, NCR, NUVA, O, PEI, PNRA, PSA, PSB, RHI, RMD, RNR, SKT, SLCA, T, TEX, TMK, TSS, TWTR, TX, ULTI, VNTV, WNC, WRB, X, ZIXI
Wed, Mar. 16, 4:05 PM
- Jabil Circuit (NYSE:JBL): FQ2 EPS of $0.57 misses by $0.03.
- Revenue of $4.4B (+2.1% Y/Y) misses by $100M.
- Expects FQ3 revenue of $4.1B-$4.3B and EPS of $0.12-$0.18, below a consensus of $4.75B and $0.51.
- Expects FY16 (ends Aug. '16) revenue of $18.5B and EPS of $2.12, below consensus of $19.7B and $2.60.
- CEO Mark Mondello: "Our updated outlook for the third quarter reflects reduced demand in mobility." Apple (NASDAQ:AAPL) is a major mobile client.
- Shares -13% after hours.
- Press Release
- Update (4:16PM ET): Jabil has pared its losses a bit: Shares are now down 8.7% after hours to $20.06.
Wed, Jan. 27, 5:17 AM
- Here are the most-recent price-target changes for Apple (NASDAQ:AAPL). All of them are reductions, although none of the firms changed their generally bullish ratings on the stock.
- Morgan Stanley: new PT (price target) of $135, previous $143. Rating remains Overweight/Cautious.
- JPMorgan: new PT of $141, previous $145. Rating remains Overweight.
- Baird: new PT of $130, previous $150. Rating remains Outperform.
- FBR: new PT of $130, previous $150. Rating remains Outperform.
- Cross Research: new PT of $140, previous $150. Rating remains Buy.
- Barclays: new PT of $142, previous $150. Rating remains Overweight.
- Macquarie: new PT of $117, previous $133. Rating remains Outperform.
- Stifel: new PT of $120, previous $140. Rating remains Buy.
- Piper: new PT of $172, previous $179. Rating remains Overweight.
- BMO: new PT of $130, previous $133. Rating remains Outperform.
- Street high is Drexel Hamilton at $200. Street low is ABG Sundal Collier at $65.
Tue, Jan. 26, 6:35 PM
- In its supplemental slides (.pdf), Apple (NASDAQ:AAPL) notes forex had a 600 bps impact on FQ1 revenue growth (2% vs. 8%). The effect was particularly strong in Europe (+4% vs. +18%) and Rest of Asia-Pac (excludes China/Japan, +4% vs. +19%).
- On the earnings call, Tim Cook noted Apple has seen economic turbulence in China/Hong Kong - Intel has also reported seeing Chinese macro pressures. Cook insists Apple remains bullish on China, and predicts rising 4G penetration will continue lifting iPhone sales. 50% of Chinese iPhone sales are said to be to first-time buyers. (live blogs: WSJ, Business Insider)
- Notably, when asked about virtual realty, Cook suggested he's positive on the technology. "I don’t think it’s a niche. I think it can be … it’s really cool and has some interesting applications." Apple recently hired VR expert Doug Bowman; Facebook is getting set to ship its first consumer Oculus Rift model, and Google/Alphabet has created a dedicated VR unit.
- When asked about iPhone ASP, CFO Luca Maestri suggested a favorable mix gave a lift - demand for 5.5" iPhones and higher storage tiers could be helping. Regarding forex, Maestri said Apple expects a 4% FQ2 revenue hit, and sees sales dropping 5%-10% Y/Y in constant currency (implies a 9%-14% drop in dollars). Forex had a $49 impact on FQ1 iPhone ASP ($691 vs. $740).
- Also mentioned: 1) iPhone channel inventory was at the low end of Apple's target range at the end of FQ1, and iPad channel inventory within its target range. 2) App Store revenue rose 27% Y/Y, and App Store customers 18%. 3) Apple plans to update its capital return plan next quarter, and to be active in debt markets.
- AAPL now -2.2% after hours to $97.80.
- Apple's results/guidance, FQ1 details/dividend
Tue, Jan. 26, 4:58 PM
- Helping Apple (NASDAQ:AAPL) beat FQ1 EPS estimates in spite of a revenue miss: Gross margin was 40.1%, up 20 bps Y/Y and above a 39%-40% guidance range. FQ2 GM guidance is at 39%-39.5% vs. a reported 40.8% a year earlier.
- Product line performance: iPhone revenue (68% of total revenue) +1% Y/Y to $51.6B; units up fractionally to 74.8M. iPad revenue -21% to $7.1B; units -25% to 16.1M. Mac revenue -3% to $6.7B; units -4% to 5.3M. Services (iTunes/App Store, Apple Music, Apple Pay, AppleCare) +26% to $6.1B. Other products (Apple Watch, iPod, Beats, Apple TV, peripherals) +62% to $4.4B.
- Regional performance: Americas revenue -4% Y/Y to $29.3B. Greater China +14% to $18.4B. Europe +4% to $17.9B. Japan -12% to $4.8B. Rest of Asia-Pac +4% to $5.4B.
- ASPs: iPhone ASP rose to $691 from FQ4's $670 and FQ3's $660. iPad ASP rose to $439 from FQ4's $433 and FQ3's $419. Mac ASP rose to $1,270 from FQ4's $1,205 and FQ3's $1,257.
- Financials: Repurchases of common stock totaled $6.9B. GAAP SG&A spend rose 7% Y/Y to $3.85B; R&D spend rose 27% to $2.4B. Apple ended FQ1 with nearly $216B in cash/investments (much of it offshore), and $63B in debt/commercial paper.
- Dividend: Apple has declared its regular quarterly dividend of $0.52/share (2.1% yield). The next dividend will be paid on Feb. 11 to shareholders on record as of the Feb. 8 close.
- CFO Luca Maestri: "Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment." Tim Cook tells CNBC Apple now has over 1B active devices.
- AAPL -0.3% after hours to $99.74.
- Apple's FQ1 results/FQ2 guidance, earnings release, earnings call webcast
Tue, Jan. 26, 4:33 PM
- Apple (NASDAQ:AAPL): FQ1 EPS of $3.28 beats by $0.05.
- Revenue of $75.87B (+1.7% Y/Y) misses by $720M.
- 74.8M iPhones (near expectations), 16.1M iPads (below expectations), 5.3M Macs (below expectations).
- Expects FQ2 revenue of $50B-$53B, below a $55.6B consensus and year-ago sales of $58B.
- Shares +0.8% after hours.
Mon, Jan. 25, 5:35 PM
Thu, Jan. 7, 4:14 PM
- Qorvo (NASDAQ:QRVO) now expects FQ3 revenue of $620M, well below prior guidance of $720M-$730M and a $723.7M consensus. The RF chipmaker blames "weaker than forecasted customer demand in the Company's Mobile Products segment."
- Revenue is expected to be flat Q/Q in FQ4. Consensus is at $641.9M. "Above-market revenue growth" is forecast for calendar 2016. FQ3 results are due on Feb. 4.
- Cirrus Logic (NASDAQ:CRUS) now expects FQ3 revenue of $347M, below prior guidance of $370M-$400M and a $386M consensus. Cirrus: "Our preliminary revenue results reflect weaker than anticipated demand for certain portable audio products. This weakness escalated over the last few weeks of December and is expected to continue to significantly impact our revenue in the March quarter."
- The audio codec developer still expects "meaningful" FY16 (ends March '16) revenue growth, and expects several new product launches to drive strong FY17 growth. FQ3 results arrive on Jan. 27.
- Both Qorvo and Cirrus are iPhone suppliers, with Cirrus getting well over half its revenue from Apple (NASDAQ:AAPL). The warnings follow multiple reports indicating Apple has cut iPhone-related orders. Cirrus has dropped to $24.52 after hours.
- Update (5:14PM ET): Qorvo is down 10.2% after resuming trading. Many other Apple suppliers are also lower.
Oct. 27, 2015, 7:11 PM
- FQ4 iPhone (NASDAQ:AAPL) sales rose 120% Y/Y in mainland China (driving 99% total Greater China revenue growth), CFO Luca Maestri mentioned on the earnings call. Meanwhile, Tim Cook insisted Chinese macro conditions remain good, and talked up the potential for middle class growth and rising 4G penetration to boost iPhone sales in China and other Asian markets. Over 50% of Chinese iPhone buyers were first-time buyers.
- Also mentioned by Cook: A strong dollar is expected to have a 700 bps impact on FQ1 revenue growth, after having an 800 bps impact in FQ4. With last year's iPhone 6 launch yielding tougher comps, FQ1 guidance implies 1%-4% Y/Y revenue growth (8%-11% exc. forex), down from FQ4's 22%. Cook expresses confidence iPhone sales will rise Y/Y, and sees smartphone upgrade programs (both Apple's and carriers') shortening upgrade cycles.
- Maestri defends the iPad (revenue -20% Y/Y in FQ4), stating sell-through was 10.3M units (above sell-in of 9.9M, but still down from year-ago sell-in of 12.3M) as channel inventories fell, and that Apple has 73% of the $200+ segment of the U.S. tablet market. Customer satisfaction is said to be at 97%.
- Also mentioned: 1) 30% of iPhone buyers upgrading an existing smartphone are believed to be former Android users. 2) The recently-launched Apple News has 40M users. 3) Apple's enterprise sales of $25B over the last 12 months (previously disclosed) reflects ~40% Y/Y growth. 4) App Store revenue rose 25% Y/Y. 5) Apple Watch shipments rose Q/Q, and are expected to rise again in FQ1. However, no specific numbers are given. 6) 15 acquisitions were made in FY15 (only some are known).
- AAPL +0.4% after hours to $115.00.
- Live blogs: WSJ, Business Insider, MarketWatch
- FQ4 results/FQ1 guidance, details
Oct. 27, 2015, 4:58 PM
- Lifting Apple's (NASDAQ:AAPL) FQ4 EPS: Gross margin was 39.9%, up 190 bps Y/Y and above guidance of 38.5%-39.5%. FQ1 GM guidance is at 39%-40%. Also giving EPS a lift: Common stock repurchases totaled $13.3B.
- Product line performance: iPhone revenue (63% of total revenue) +36% Y/Y to $32.3B; units +22% to 48M. iPad revenue -20% to $4.3B; units -20% to 9.9M. Mac revenue +4% to $6.9B; units +3% to 5.7M. Services (iTunes/App Store, AppleCare, Apple Pay, Apple Music) +10% to $5.1B. Other products (iPod, Beats, Apple Watch, peripherals) +61% to $3B.
- Regional performance: Americas revenue +10% Y/Y to $21.8B. Greater China +99% to $12.5B (iPhone 6 demand). Europe +2% to $10.6B. Japan +9% to $3.9B. Rest of Asia-Pac +27% to $2.7B. International sales were 62% of revenue.
- ASPs: iPhone ASP rose to $670 from $660 in FQ3 and $659 in FQ2 (also boosted EPS). iPad ASP rose to $433 from $419 in FQ3 and $430 in FQ2. Mac ASP was $1,205 vs. $1,257 in FQ3 and $1,231 in FQ2.
- Financials: GAAP R&D spend rose 32% Y/Y to $2.2B, and SG&A spend 17% to $3.7B. Apple ended FQ4 with nearly $206B in cash/investments (much of it offshore), and $56B in debt.
- Apple has declared its regular quarterly dividend of $0.52/share (1.8% yield). The next dividend is payable on Nov. 12 to shareholders on record as of Nov. 9.
- AAPL +1.8% after hours to $116.60. Earnings call at 5PM ET (webcast).
- FQ4 results/FQ1 guidance, PR
Apple, Inc. engages in the design, manufacture, and marketing of mobile communication, media devices, personal computers, and portable digital music players. The firm offers products and services under the iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV brands; consumer and professional... More
Industry: Personal Computers
Country: United States
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