Apple Triumphs – Apple Reports Earnings
As we journey through the post-pandemic era, several technology stocks continue to falter with diminishing demand, supply chain issues, and mass layoffs. However, one company has kept its head firmly on its shoulders, delivering stellar bottom-line performances and continued innovation. This company is Apple, which recently reported its earnings after Thursday’s volatile trading day. For their second-fiscal quarter earnings, Apple reported a net income of $24.16 billion as opposed to the estimates of roughly $22.73 billion. This achievement is, however, outshined by last year’s net income of $25.01 billion in the same quarter.
Regardless, Apple points to much larger than expected iPhone sales driving their sales figures, yielding $51.33 billion in iPhone revenue compared to the expected $48.84 billion. Despite the uptick in revenues relative to Wall Street’s expectations, Apple did produce total sales that were down 3% from last year’s same quarter. Regardless, Apple has done significantly well in its cost management, with Apple CEO Tim Cook viewing mass layoffs as a “last resort”. In a macro environment meddled with inflated costs, Apple successfully operated well during the pandemic, hiring far less than its mega-cap tech counterparts, and evidently poising the company to avoid any mass company-wide layoffs. Nevertheless, Apple continued a trend started in 2020 and didn’t provide guidance for the next quarter, but briefly claimed next quarter should yield results similar so long as the economic climate doesn’t worsen dramatically.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.