Apple Inc. (Nasdaq: AAPL) reported better than anticipated fiscal 2023 second-quarter results. The earnings beat was led by robust iPhone sales.
Nevertheless, the tech giant recorded a sequential decline in revenues. Overall, the stock of Apple ended Friday’s trading at $173.57, up 4.69% or $7.78 from the prior close.
Cupertino, California-based Apple reported second-quarter revenues of $94.84 billion, down 2.50% from $97.28 billion in the similar period last year.
For the second quarter that ended April 1, 2023, the company recorded a net income of $24.16 billion, or $1.52 per share, compared with a net income of $25.01 billion, or $1.52 per share, in the second quarter ended March 26, 2022.
Analysts surveyed by Refinitiv had anticipated Apple to post earnings of $1.43 per share on revenues of $92.96 billion.
Tim Cook, Apple’s CEO, stated, “We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high.”
Segment wise:
- Products revenues were $73.93 billion, down 4.60% from last year.
- Services revenues rose by 5.50% y-o-y to $20.91 billion but missed forecasts of $20.97 billion.
In terms of products
- iPhone revenues of $51.33 billion surpassed the StreetAccount consensus of $48.84 billion. Interestingly, iPhone sales increased despite a 15% contraction (as per IDC survey) in the smartphone market.
- Mac revenues of $7.17 billion missed StreetAccount forecasts of $7.80 billion.
- iPad revenues of $6.67 billion missed StreetAccount expectations of $6.69 billion.
- Other product revenues of $8.76 billion exceeded forecasts of $8.43 billion.
During Q2 2023, Apple recorded a gross margin of 44.30%, surpassing forecasts of 44.10%. The 2% y-o-y rise in iPhone revenue indicates that logistics issues have been sorted out.
Specifically, Apple’s revenues from China (Mainland), Hong Kong, and Taiwan were $17.81 billion, a decline from $18.34 billion last year.
Looking ahead, the company’s board of directors has approved a cash dividend of $0.24 per share, reflecting an increase of 4%, payable on May 18, 2023. Interestingly, in 2Q 2023, Apply paid $23 billion in share buybacks and dividends.
Furthermore, the board of directors has also approved a fresh share repurchase program worth $90 billion.
The company did not issue any outlooks, continuing the pattern that began at the start of the Covid-19 pandemic. However, during the analysts’ call, Apple’s CFO, Luca Maestri, stated that the firm anticipates aggregate revenue to decline by roughly 3% in the third quarter.
The quarterly earnings beat is expected to keep Apple’s stock slightly bullish in the short term.
The historical price chart indicates that the stock of Apple is ascending after consolidating between 130 and 150. The stock is trading above its 50-day moving average, while the stochastic indicator is in the bullish zone. Therefore, we anticipate Apple’s stock to remain in an uptrend in the days ahead.
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