Apple GAAP EPS of $1.88 misses by $0.07, revenue of $117.15B misses by $4.5B

• Apple press release (NASDAQ:AAPL): Q1 GAAP EPS of $1.88 misses by $0.07.
• Revenue of $117.15B (-5.5% Y/Y) misses by $4.5B.

• Installed base crosses 2 billion active devices and hits all-time high for all major product categories.

• Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on February 16, 2023 to shareholders of record as of the close of business on February 13, 2023.

• Shares -5%.
• Net Sales by category
  • Products revenue of $96.39B vs. $104.4B in 1Q22.
  • iPhone revenue of $65.78B vs. $71.63B in 1Q22.
  • Mac revenue of $7.74B vs. $10.85B in 1Q22.
  • iPad revenue of $9.39B vs. $7.25B in 1Q22.
  • Wearables, home and accessories of $13.48B vs. $14.7B in 1Q22.
  • Service revenue of $20.76B vs. $19.52B in 1Q22.

Comments

[Cryptoanalytic]

Yesterday many self-regarded experts on this thread predicted the share price would be down significantly. It is comical how wrong they were.

[Stefan Redlich]

@Cryptoanalytic I said it will turn green :)

[Cryptoanalytic]

@Stefan Redlich I commend your conviction Stefan.

[kata]

@Cryptoanalytic impressive

[Junk Dealer]

misses by $4.5B and the stock is up almost 4%??

[2MuchDebt]

Apple's stock is now positive on the day. Nice to see. We'll see if it lasts.

[ex institutional listed derivatives analyst]

Markets are forward-looking and unfortunately, AAPL is not a growth stock. High exposure to China is not good. The products are expensive and consumers have no money. This is a horrible earning report and I am surprised that the stock isn't down more. I love apple products but I have no plans to upgrade.

[Djreef1966]

@ex institutional listed derivatives analyst I still have an iPhone8, and my iPad is 4 years old. Why replace them? They work just fine.

[mossnvikes]

Hoping Tim raises the dividend more than a few Pennies in May.

[Croogie]

@mossnvikes you will get "a few pennies more". I guess it will be two.
but invest 5 minutes into that: www.youtube.com/...

[Stckpkr70000]

Apple has seen its best days. The Covid high is over, and earnings will remain stagnant to down. A multiple of 24 with negative to flat growth is pure insanity. Couple that with 140 billion of debt and a silly p/s ratio. Sub 100 later this year.

[Silen]

@Stckpkr70000 yep. Negative real growth is around 12%, inflation adjusted. Don't even speak about the horrible balance sheet.

[Croogie]

@Stckpkr70000 not at all, it some growth lack because of Covid "gold rush", but having 2 billion devices in the world is safeguarding future demand.

[JackCr]

@Croogie

I respectfully disagree

1. High cost of devices in a slowing worldwide economy will hamper demand

2. Small incremental improvements will not be sufficient incentive to replace already great devices......

[tjf@denver]

Come for the horseshite earnings, stay for the weak assed dividend

[djlongjay]

@tjf@denver I stay for the Covered Calls Options. Collected some nice premiums. Been doing it for a while. Hopefully I won't get called. Good trading to you

[Loophole69]

@djlongjay - I do the same. Nice bump to any dividend paid.

[djlongjay]

@Loophole69 Excellent. Yes, very nice add on. Good trading to you

[cpraderas]

Let’s get to the conference call.
Most of the numbers have been known for quite a while

[Loophole69]

@cpraderas - Thanks funny because I searched your posts and didn't see any of "the numbers" from Apple posted here on SA from you that were "known for quite a while."

Did Tim call you and tell you to keep them between you two?

[cpraderas]

@Loophole69 No, but if you read enough financial reports on AAPL, you’d see the same numbers repeatedly. It’s kind of trivial. But I guess that’s something you don’t do much of

[Loophole69]

@cpraderas True I don't spout that everyone knew about the numbers, when they didn't.

[DanQG]

When was the last time AAPL missed both the top and bottom line?

[Roiss' Conclusions]

@DanQG 2016. Back then it was trading at a PE of 10 with no growth.

[mwilson801]

There is a new number at the end of the current year... and it feels like stocks can no longer drop.
The very same Powell speech that tanked equities a few months ago, now sparks a rally.
Subpar results that would have obliteraed valuations a few weeks ago, now spark an innocent hesitant slip.
How is this possible in a supposedly free and unadulterated market?

[my_symphony2003]

no growth, high p/e.

[kata]

They should have warned. China was closed for petes sake, how could anyone have expected better. Because they didn't warn. Shame on them. No one would have been surprised.

[cpraderas]

@kata Everyone has known for over a month.
Where were you?

[DrewMcVay]

@kata China being closed didn't cause Mac sales to be down 29% y/y. Kinda insane how some people are willing to buy that excuse.

[Stckpkr70000]

@DrewMcVay exactly. Dishonest at best.

[kubis]

Hard to compare with Q1/22, that was still a COVID quarter in most places, affecting IT spending.

[Stckpkr70000]

@kubis well, the stock price traded around those numbers that were merely a blip.

[Lord TGO Investment]

Dang, that’s a bad miss. I’m still a buyer around $125/share

[PDXGuy]

Not Surprised, one bad quarter doesn’t decide the apple future. Long $APPL. Will add more on weakness.

[Djreef1966]

@PDXGuy Ya, but successive quarters don’t look like they’ll be any better.

[johnnybahama]

@Djreef1966 China is reopening

[User 31614085]

@PDXGuy that's three bad quarters in a row...comparing Y.O.Y.

[b rowse]

Yikes

[Michink]

Atrocious results, -15% tomorrow

[2MuchDebt]

@Michink Or +2.44%

[Cristi_an]

Amazon, Google and Apple.. tomorrow is going to be a little bloodbath

[BuyStockGoesLower]

@Cristi_an Just a little.. Maybe Google and amazon go back around $90... I hope no bad news.

[capfly]

@Cristi_an let's see - after hours none of them are down more than they were up for the day. Surprising in some ways given the misses but then again didn't everyone see these coming already?

[jakefountain]

Not a good QTR. big question: How much did Apple sales really slip because of production issues, and will people who missed out on an iPhone 14 Pro in December wait until 2023 to pick one up?

[Cristi_an]

@jakefountain let answer last part from my perspective: i have iphone 13pro and i was planning to get 14pro on launch. After seeing the phone specs i decided to skip and will wait to see 15pro specs

[thinkingdna]

Ugly, but expected.