- Apple reported Q4 earnings after the bell on Monday, beating expectations on the top and bottom lines on strong iPhone sales.
- For the quarter, Apple reported EPS of $2.10 on revenue of $114.48 billion, beating estimates, but Greater China revenue fell short at $17.54 billion versus $18.75 billion expected.
- Apple issued a forecast for the holiday quarter of 7% to 10% revenue growth, higher than the 6.1% analyst estimate, but its gross margin forecast of 45% to 46% trailed the average estimate.
- Apple's stock dropped about 2% on Monday following the earnings report.
- Apple's iPhone sales came in at $57.58 billion versus an estimate of $56.48 billion.
- Services revenue was $31.57 billion compared to a projected $31.58 billion.
- Apple's Mac business brought in $10.79 billion, topping analyst expectations of $9.69 billion.
- Apple's Greater China business grew 21% on an annual basis to $17.53 billion in sales.
- Apple's revenue rose 12% from $102.5 billion a year earlier.
Apple's fourth-quarter earnings report revealed a mixed performance, with earnings per share (EPS) of $2.10 and revenue of $114.48 billion, exceeding analyst expectations.
However, Greater China revenue fell short at $17.54 billion, below the projected $18.75 billion.23
CEO John Ternus noted strong iPhone sales of $57.58 billion, surpassing estimates of $56.48 billion.7
Despite this, the company's gross margin forecast of 45% to 46% disappointed investors, trailing the average estimate of 46.3%.45
Apple's services revenue was slightly below expectations at $31.57 billion, compared to the projected $31.58 billion.8
Apple CFO Kevan Parekh expressed optimism for the December quarter, predicting revenue growth of 7% to 10% year-over-year, exceeding the 6.1% average analyst estimate.
Despite the positive outlook, the stock dropped due to concerns over margins and slowing growth in services.
Ternus remarked on the unprecedented memory pricing increases impacting costs, stating, "What we are seeing with memory pricing right now is unprecedented."
Apple's Mac division saw significant growth, with revenue rising nearly 24% to $10.79 billion, while the iPad division contracted over 10% to $6.22 billion.9
Overall, Apple capped off its best fiscal year ever with record revenue of $479 billion.
"I think at this point, with everything we've achieved, it just feels like we've never been more confident that the best is yet to come," Ternus stated.
“The company's gross margin forecast for the current quarter is 45% to 46%, trailing the 46.3% average estimate. CEO John Ternus noted that memory pricing is 'unprecedented', while iPhone sales jumped over 17% year-over-year.”
Yahoo FinanceCNBC
