Apple Smashes The Street
Apple Smashes The Street
Apple Sails into the HeadWinds...
Apple today announced financial results for its fiscal 2022 third quarter ended June 25, 2022. The Company posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20. Prior to Apple’s earnings report, Wall Street analysts’ consensus expected Apple to earn $1.16 per share on revenue of $82.8 billion for the quarter.
“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO, in a statement. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”
Apple's iPhone revenue hit $40.6 billion, up from $39.6 billion in the year-ago quarter.
iPad revenue was down to $7.22 billion, a decrease from $7.37 billion.
Mac revenue also went down to $7.38 billion, down from the year-ago revenue of $8.2 billion.
Wearables, Home, and Accessories decreased to $8.08 billion, down from $8.8 billion.
Services brought in $19.6 billion in the June quarter, an increase from the $17.4 billion it posted in during Q3 2021.
Tim Cook talked about the jobs created by the app economy and estimated that 2.2 million jobs are supported and many more around the world. He claimed that stopping 1.6 million risky apps in 2021 prevented nearly $1.5 billion in frauds.
Apple indicated at the end of Q2 (March) that they forecasted supply constraints would be in the range of $4-8 billion and the Q3 results saw that around the low-end $4 billion mark. This was primarily due to Covid issues such as plant closures and lockdowns. There was also some shortages of silicon but that was not as severe.
Apple did not provide formal revenue guidance for the upcoming September quarter as has been the case throughout these turbulent pandemic times but Luca Maestri said revenue is expected to "accelerate" on a year-over-year basis. Maestri also said Apple expects its gross profit margins for the quarter to be between 41.5% and 42.5%.
Apple's board of directors declared a cash dividend of $0.23 per share. The dividend will be payable on Aug. 11 to shareholders of record as of the close of business on Aug. 8.
All in all a remarkable quarter for Apple given the economic headwinds, inflation, Covid shutdowns and the loss of the Russian market completely. Congratulations to the entire Apple team!