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Apple Inc. (AAPL)

  • Tue, Apr. 28, 12:11 PM
    • Apple (AAPL +0.3%) is up slightly after beating FQ2 estimates, offering in-line FQ3 guidance, and upping its dividend and buyback authorization. At least 9 firms have hiked their targets; no upgrades or downgrades have arrived.
    • Brean's Ananda Baruah (target hiked to $170) thinks Street estimates remain "materially low" through 2017, given iPhone unit growth, the margin boost provided by a mix shift towards iPhones and (within iPhone sales) the 6+, and operating expense leverage. He forecasts iPhone shipments and EPS respectively rising to 285M and $12.73 by FY17 (ends Sep. '17).
    • Citi's Jim Suva, who added Apple to Citi's Focus List 4 weeks ago, still sees carrier upgrade plans, low multiples, margin expansion, Apple Pay/Passbook, and enterprise growth acting as catalysts. Canaccord's Mike Walkley (target hiked to $155) sees the iPhone installed base growing to 500M this year.
    • Those offering more cautious takes often question the sustainability of iPhone growth. Nomura states sales growth in developed markets appears to have fallen in half in FQ2, and expects Chinese growth to slow the way Japanese growth has. Raymond James' Tavis McCourt (recently downgraded to Market Perform) also expects slowing iPhone growth, and (given a $171B+ offshore cash balance) thinks major foreign acquisitions are possible in the absence of a tax holiday.
    • Returning to Twitter after a 5-week hiatus, Carl Icahn says he still considers Apple "undervalued and misunderstood," and expects to "put out another in-depth report within two weeks." His last report (involved a $216 target) was published in February.
    • Prior Apple earnings coverage, CC transcript
  • Mon, Apr. 27, 5:01 PM
    • With strong iPhone sales (and perhaps also lower memory prices) providing a lift, Apple (NASDAQ:AAPL) had an FQ2 gross margin of 40.8%, up 150 bps Y/Y and above guidance of 38.5%-39.5%. FQ3 GM guidance is at 38.5%-39.5%.
    • Product line performance: iPhone revenue (69% of total revenue) +55% Y/Y to $40.3B; units +40%. iPad -29% to $5.4B; units -23%. Mac +2% to $5.6B; units +10%. Services (iTunes, App Store, AppleCare, Apple Pay, etc.) +9% to $5B. Other products (iPod, Apple TV, Beats) -10% to $1.7B.
    • Regional performance: Americas revenue +19% to $21.3B. Europe +12% to $12.2B. Greater China +71% to $16.8B. Japan -15% to $3.5B. Rest of Asia-Pac +48% to $4.2B. International sales were 69% of revenue, up from FQ1's 65%.
    • iPhone ASP was $659, down from FQ1's $687 but up from FQ4's $603 (iPhone 6 Plus boost). iPad ASP was $430 vs. $419 in FQ1 and $432 in FQ4. Mac ASP was $1,231 vs. $1,258 in FQ1 and $1,200 in FQ4.
    • GAAP SG&A spend rose 18% Y/Y to $3.46B. R&D spend rose 35% to $1.92B.
    • $7B was spent on buybacks, up from FQ1's $5B. Apple ended FQ2 with over $193B in cash/investments (much of it offshore), and nearly $44B in debt.
    • Apple's increased quarterly dividend of $0.52/share is good for a yield of 1.5% at current levels. The next dividend is payable on May 14 to shareholders on record as of the May 11 close.
    • AAPL +1.5% AH to $134.59. The CC is underway (webcast).
    • FQ2 results/FQ3 guidance, PR
  • Mon, Apr. 27, 4:35 PM
    • Apple (NASDAQ:AAPL): FQ2 EPS of $2.33 beats by $0.17.
    • Revenue of $58.01B (+27.1% Y/Y) beats by $1.95B.
    • 61.2M iPhones (above expectations), 12.6M iPads (below expectations), 4.6M Macs (near expectations).
    • Expects FQ3 revenue of $46B-$48B vs. $47.06B consensus.
    • Dividend increased by 11%, buyback authorization increased by $50B to $140B.
    • Shares +2.2% AH.
    • Press Release
  • Sun, Apr. 26, 5:35 PM
  • Tue, Jan. 27, 5:47 PM
    • Tim Cook has provided a more concrete timetable for Apple's (NASDAQ:AAPL) smartwatch launch on the FQ1 CC. 9to5 Mac previously reported hearing the Watch would launch by the end of March; Apple had before only said it would ship in "early 2015." (live blogs: WSJ, BI)
    • CFO Luca Maestri notes forex headwinds had a 4% impact on revenue growth (plenty of other tech giants can relate), with the yen and ruble the biggest culprits. He suggests the impact going forward will be around 5%; more favorable component costs will partly offset.
    • Maestri adds iPhone channel inventory fell by 200K Q/Q, and that supply only met up with demand in January. iPad inventory rose by 1M.
    • Other details: 1) iPhone sales more than doubled Y/Y in mainland China and Brazil. 2) App Store revenue rose 41% Y/Y. iTunes/media revenue rose by $200M to $2.6B. 3) Apple now has 447 retail stores (182 outside the U.S.).
    • AAPL +4.9% AH. FQ1 results, details.
  • Tue, Jan. 27, 4:57 PM
    • Thanks to a stronger-than-expected iPhone mix, Apple (NASDAQ:AAPL) had an FQ1 gross margin of 39.9%, up 200 bps Y/Y and above guidance of 37.5%-38.5%. FQ2 GM guidance is at 38.5%-39.5%.
    • Product line performance: iPhone revenue (69% of total revenue) +57% Y/Y to $51.2B; units +46%. iPad -22% to $9B; units -18%. Mac +9% to $6.9B; units +14%. Services (iTunes, App Store, Apple Pay, etc.) +9% to $4.8B. Other products (iPod, Apple TV, Beats, accessories, etc.) -5% to $2.7B.
    • Regional performance: Americas revenue +23% to $30.6B. Europe +20% to $17.2B. Greater China +70% to $16.1B (pent-up demand for bigger iPhones). Japan +8% to $5.4B. Rest of Asia-Pac +33% to $5.2B. International sales were 65% of revenue.
    • With the 6 Plus providing a boost, iPhone ASP rose to $687 from $603 in FQ4 and $561 in FQ3. iPad ASP fell to $419 from $432 and $443. Mac ASP rose to $1,258 from $1,200 and $1,255.
    • SG&A spend rose 18% Y/Y to $3.6B, and R&D spend 43% to $1.9B.
    • $5B was spent on buybacks. Apple ended FQ1 with over $177B in cash/investments, and over $36B in debt.
    • AAPL +5.3% AH to $114.90. FQ1 results, PR.
  • Tue, Jan. 27, 4:33 PM
    • Apple (NASDAQ:AAPL): FQ1 EPS of $3.06 beats by $0.46.
    • Revenue of $74.6B (+29.5% Y/Y) beats by $6.91B.
    • 74.5M iPhones (above expectations), 21.4M iPads (near expectations), 5.5M Macs (near expectations).
    • Expects FQ2 revenue of $52B-$55B vs. a $53.79B consensus.
    • Shares +5.1% AH.
    • Press Release
  • Mon, Jan. 26, 5:35 PM
  • Mon, Jan. 5, 7:18 PM
    • Apple's (NASDAQ:AAPL) FQ1 report will arrive after the close on Tuesday, Jan. 27. As usual, the CC will be held at 5PM ET.
    • Consensus is for revenue of $66.42B (+15.3% Y/Y), and EPS of $2.54 (+23%). Last month, Morgan Stanley pegged the iPhone sales consensus at 63M; FQ1 iPhone sales totaled 51M a year ago.
  • Oct. 20, 2014, 6:15 PM
    • Though FQ4 iPhone sales beat estimates, iPhone channel inventory is below Apple's (NASDAQ:AAPL) historical 4-6 week target range, the company disclosed on the CC. Apple is upping its target range to 5-7 weeks, but doesn't expect to reach it in FQ1. (live blogs: BI, WSJ)
    • As expected, a mix shift towards the iPhone 6 and the costlier/supply-constrained 6 Plus is boosting iPhone ASPs. "We're selling everything that we make," Tim Cook interjected during a question about product mix.
    • iPad channel inventory fell by 500K during FQ4. In spite of the 14% Y/Y drop in iPad revenue, Cook dismisses suggestions the market is saturated, noting over half of sales still go to first-time buyers. He did, however, admit consumers hold onto iPads (less likely to be sold with subsidies/installment plans) longer than they hold onto iPhones.
    • CFO Luca Maestri Maestri noted Apple, like many other U.S. companies, is dealing with forex headwinds caused by a strong dollar. He added forex is factored into FQ1 guidance.
    • Other details: 1) Apple bought 7 more companies in FQ4 (only 4 are known), bringing the FY14 total to 20. 2) App Store revenue rose 36% Y/Y. 3) Cook asserts Mac market share (previous) is at its highest level since 1995. FQ4 Mac revenue was 25% above iPad revenue. 4) Apple expects to open 25 new stores in FY15, ~75% of which will be outside the U.S.
    • AAPL +1.5% AH. FQ4 results, details.
  • Oct. 20, 2014, 5:00 PM
    • Apple (NASDAQ:AAPL) had an FQ4 gross margin of 38%, +100 bps Y/Y and at the high end of a 37%-38% guidance range. FQ1 GM guidance is at 37.5%-38.5%.
    • Product line performance: iPhone revenue (56% of total revenue) +21% Y/Y to $23.7B, after growing 9% in FQ3; units +16%. iPad revenue -14% to $5.3B, after falling 8% in FQ3; units -13%. Mac revenue +18% to $6.6B, after rising 13% in FQ3; units +21%.
    • iTunes/software/services revenue +8% to $4.6B. Accessories +13% to $1.5B. iPods -28% to $410M.
    • Regional performance: Excluding retail, Americas revenue +17% to $16.2B (stronger than in recent quarters); Europe +19% to $9.5B (likewise); Greater China +1% to $5.8B; Japan +5% to $3.5B. Rest of Asia-Pac -3% to $1.9B. Retail +15% to $5.1B.
    • Helping margins: iPhone ASP rose to $603 from $561 in FQ3 and $596 in FQ2. iPad ASP fell to $432 from $443 in FQ3 and $465 in FQ2. Mac ASP fell to $1,200 from $1,255 in FQ3 and $1,334 in FQ2.
    • GAAP R&D spend +44% Y/Y to $1.69B. SG&A spend +18% to $3.16B.
    • $17B was spent on buybacks in FQ4, and $45B over the whole of FY14. Apple ended the quarter with over $155B in cash/investments, and over $35B in long-term debt and commercial paper.
    • AAPL +1.2% AH. CC at 5PM ET. FQ4 results, PR.
  • Oct. 20, 2014, 4:34 PM
    • Apple (NASDAQ:AAPL): FQ4 EPS of $1.42 beats by $0.11.
    • Revenue of $42.12B (+12.4% Y/Y) beats by $2.27B.
    • 39.3M iPhones (above expectations), 12.3M iPads (below expectations), 5.5M Macs (above expectations).
    • Expects FQ1 revenue of $63.5B-$66.5B, mostly above a $63.52B consensus.
    • Shares +0.5% AH.
    • Press Release
  • Oct. 19, 2014, 5:35 PM
  • Aug. 4, 2014, 4:43 PM
    • GT Advanced (NASDAQ:GTAT) now expects full-year revenue to be in the lower half of a prior $600M-$800M range (consensus is at $666.8M). But it also expects EPS to be in a range of $0.12-$0.18, the high end of a prior $0.02-$0.18 and above a $0.03 consensus. GT attributes the EPS strength to mix changes and better-than-expected gross margin.
    • 2016 EPS guidance of $1.50 or more is reiterated. The company's Merlin and Hyperion tech platforms are expected to contribute to 2016 results.
    • Q2 gross margin was 25.2%, up from 8.5% in Q1 and better than expected in light of the margin pressure placed by the Apple (NASDAQ:AAPL) deal. GM was still down from 35% a year ago.
    • GT says the buildout of its Arizona facility (used to make sapphire for Apple) is "nearly complete," and that the company is starting the transition to volume production. GT received a $103M prepayment from Apple in Q2, and expects a final $139M prepayment by the end of October.
    • Equipment orders totaled $75M ($72M sapphire-related), up sharply from Q1's low $29M. Equipment backlog grew by $19M Q/Q to $628M ($333M sapphire, $292M polysilicon, $3M solar).
    • Q2 results, PR
  • Jul. 23, 2014, 11:31 AM
    • "With [gross margins] stabilizing and core demand trends solid, we think investors will want to own Apple (AAPL +3%) stock into bigger-screen iPhone 6 and ecosystem-expanding iWatch/iBand launches," writes Evercore, staying bullish on Apple following its mixed FQ3 results and light FQ4 guidance.
    • Macquarie: "The bottom line is that the iPhone 6 reception is what matters right now." Its target has been raised by $7 to $102. At least 6 other firms have also hiked their PTs today.
    • Citi, which recently launched coverage at Buy, expects 140M iPhone 6 sales over the first 12 months (compares with an iPhone installed base of 300M), and thinks the adoption of installment/early upgrade plans could provide further upside.
    • It's also pleased with Apple's 28% Greater China growth, given fears of tougher competition from local vendors - fast-growing Xiaomi just rolled out a metal-framed flagship phone that goes for $320 unsubsidized.
    • 9to5 Mac reports today Apple is "tentatively" planning to unveil the iPhone 6 in mid-September. Sources state the 4.7" model is set to be shown off, but add a final decision hasn't been made on revealing the 5.5" model at the event. KGI reported last week the 5.5" model could be delayed due to production issues.
    • The site also reports Apple is planning an October event that will likely involve an iWatch/fitness band. Apple is fresh off receiving a patent for a modular smartwatch design that includes a strap with built-in sensors and other circuitry.
    • Prior Apple earnings coverage
  • Jul. 22, 2014, 6:28 PM
    • FQ3 iPad (NASDAQ:AAPL) sales were hurt by channel inventory cuts, Tim Cook states on the CC. He adds emerging markets tablet demand is holding up better than U.S. demand - PC sales have been rebounding in the latter - and that Apple is counting on its IBM partnership to boost business iPad sales; U.S. business penetration is pegged at 20%.
    • Over half of all iPad buyers are still first-time buyers - that points to both growing penetration and relatively low upgrade rates. The tablet market's growth has slowed considerably in recent quarters.
    • CFO Luca Maestri states cost improvements contributed to the FQ3 gross margin beat; a mix shift towards iPhones (have higher margins than iPads) also didn't hurt. He hints new products are partly responsible for the conservative FQ4 margin guidance.
    • Also mentioned: 1) Apple has bought 5 more companies since the end of FQ2. 2) The cash balance rose $13.9B Q/Q to $164.5B; 84% of it is offshore. 3) NAND flash, mobile DRAM, and LCD prices fell in FQ3, while PC DRAM prices rose. 4) iTunes revenue rose 8% to $2.6B.
    • With iPhone mix shifting towards emerging markets, iPhone ASP fell to $561 from $596 in FQ2 and $637 in FQ1; Cook suggests 5C sales were strong. iPad ASP was $443 vs. $465 in FQ2 and $440 in FQ1. Mac ASP fell to $1,255 vs. $1,334 in FQ2 and $1,322 in FQ1.
    • AAPL -0.5% AH. CC live blogs: I, II
    • Prior Apple earnings coverage
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Company Description
Apple Inc designs, manufactures, & markets mobile communication & media devices, personal computers, & portable digital music players, & sells a variety of related software, services, accessories, networking solutions, & third-party digital content.
Sector: Technology
Country: United States