Yesterday, 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| 246 Comments
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
Jul. 22, 2014, 4:52 PM
- Apple (NASDAQ:AAPL) had an FQ3 gross margin of 39.4%, +250 bps Y/Y, above guidance of 37%-38%, and driving the EPS beat. FQ4 GM guidance is also at 37%-38%.
- iPhone revenue (53% of total revenue, and a bigger % of op. profit) +9% Y/Y to $19.8B, after growing 17% in FQ2. iPad revenue -8% (to $5.9B) vs. -13%. Mac revenue +13% (to $5.5B) vs. +1%.
- iTunes/software/services revenue +12% to $4.5B, Accessories +6% to $1.3B, iPod -40% to $442M.
- Excluding retail, Americas revenue +1% Y/Y to $14.6B, Europe +6% to $8.1B, Greater China (boosted by China Mobile/4G launches) +28% to $5.9B, Japan +1% to $2.6B (slowed from FQ2's +26%), rest of Asia-Pac +6% to $2.2B (a notable improvement from -17% in FQ2). Retail revenue +1% to $4.1B.
- R&D spend +36% Y/Y to $1.6B, SG&A +8% to $2.9B. $5B was spent on stock repurchases.
- AAPL -0.9% AH. FQ3 results, PR.
Jul. 22, 2014, 4:33 PM
- Apple (NASDAQ:AAPL): FQ3 EPS of $1.28 beats by $0.05.
- Revenue of $37.43B (+6% Y/Y) misses by $540M.
- 35.2M iPhones (near expectations), 13.3M iPads (below expectations), 4.4M Macs (above expectations).
- Expects FQ4 revenue of $37B-$40B, below a $40.4B consensus.
- Shares -0.7% AH. CC at 5PM ET.
- Press Release
Jul. 21, 2014, 5:35 PM
AAPL vs. ETF Alternatives
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.
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