Apple Inc. (AAPL) outperformed the market in terms of earnings and revenue.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
Analysis of Apple’s (AAPL) Financial Results
AAPL posted results for the third quarter of fiscal year 2021 that was above analysts’ forecasts. Earnings per share (EPS) more than doubled from the previous quarter, exceeding forecasts.
Revenue also was above analyst expectations, growing 36.4 percent year over year (YOY) to a new high for the June quarter. Apple’s income from services exceeded experts’ expectations.
In after-hours trading, the company’s stock was marginally higher. Apple’s stock has returned 55.9% over the last year, well above the 500’s total return of 35.9%.
Revenue from AAPL Services
Apple’s services revenue increased 32.9 percent year over year, the highest rate of growth since the third fiscal quarter of 2018.
Apple’s digital content shops and streaming services, such as its multiple App Store platforms, Apple Music, Apple Arcade, Apple News+, and Apple TV+, are among the company’s offerings. AppleCare, advertising services, cloud services, and other services, such as Apple Card and Apple Pay, all contribute to the company’s service income.
The profit margins on services are far higher than those on Apple’s products. That means that each dollar of additional service sales raises Apple’s earnings disproportionately when compared to hardware sales.
However, Apple’s income is still dominated by hardware sales. Apple’s iPhone sales alone contributed for 48.6% of total revenue, up 49.8% year over year.
In its earnings report, Apple did not give any particular future guidance. Since the start of the COVID-19 epidemic, it hasn’t given any forecast.
Recap of Apple’s Earnings Conference Call
Tim Cook, Apple’s Chief Executive Officer (CEO), indicated on a conference call with analysts that supply constraints relating to “silicon,” a popular word for computer processors, are affecting the company.
These restrictions, according to Cook, will have an impact on the company’s iPhone and iPad sales in the September quarter. The iPhone is the company’s most profitable product.
Apple’s freight expenses, according to Cook, are too high.
Apple’s next earnings report (for the fourth quarter of fiscal year 2021) is expected to be issued on October 27, 2021.
