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Apple Inc. (AAPL)

  • 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
  • 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
  • Apr. 24, 2014, 10:40 AM
    • Apple (AAPL +8%) has received 5 PT hikes to go with one upgrade (from CLSA) following its iPhone-driven FQ2 beat, dividend/buyback increases, and split announcement.
    • Jefferies (Buy) isn't crazy about FQ3 guidance (it thinks FQ2 demand pull-in is a factor), but is pleased with the pickup in iPhone sales growth and recommends buying shares "ahead of what we believe will be a successful iPhone 6 launch."
    • Canaccord (Buy): "While our survey work indicates iPhone will likely lose share over the next several months to refreshed Android products, we believe Apple will win back meaningful high-end market share during [2H14]."
    • Nomura (Neutral) is more cautious, noting growth was just 0.4% Y/Y outside of China and Japan. But it also sees "little risk of a material negative disappointment in the coming months."
    • Also: 1) Ahead of Angela Ahrendts' arrival next week, Tim Cook suggests Apple plans to triple its Chinese store count over the next two years. 2) Many observers have pointed out Apple's split could lead it to join the Dow (DIA), given the index is price-weighted rather than valuation-weighted.
    • More on Apple's FQ2. CC transcript.
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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