Apple earnings beat Wall Street estimates iPhone sales below expectations

Apple (AAPL.US) reported its latest quarterly results, but the market reaction has been muted — shares barely moved in after-hours trading. Overall, the report looks solid. Most importantly, the company’s high-margin services segment clearly beat expectations, while iPhone demand was the only slight disappointment on the product side. Sales in China came in stronger than expected.

• Revenue: $111.18B vs $109.66B expected → beat
• EPS: $2.01 vs $1.95 expected → beat
• Gross margin: 49.27% vs 48.38% expected

Earnings by business segments

• iPhone: $56.99B vs $57.21B expected → slight miss
• Services: $30.98B vs $30.39B expected → beat
• Mac: $8.40B vs $8.02B expected → beat (growth supported in part by MacBook Neo)
• iPad: $6.91B vs $6.66B expected → beat
• Wearables: $7.90B vs $7.70B expected → beat
• Greater China: $20.50B vs $19.45B expected → beat
• Americas rev. $45.09B, vs $45.82B expected → miss
• Total oper expenses $18.90B, vs $18.47B expected –> miss

Tim Cook on iPhone: “Demand was off the charts, but we’re currently facing some constraints in the supply chain (…) Chip shortages weighed on overall sales.” Additionally

• $100B share buyback authorized
• Dividend: $0.27 per share

Apple stock (H1 timeframe) During Thursday’s session, the stock pulled back toward support from the 50-period exponential moving average on the hourly chart.

Source: xStation5