Apple Earnings: Stock Slides As Profits Slip, iPhone Sales Disappoint - Forbes

1 year ago 121

Topline

Apple disappointed successful its quarterly net study released Thursday afternoon, sending its banal sliding, arsenic the world’s largest institution becomes the latest Silicon Valley behemoth to measurement to the sheet during the important net season.

Apple CEO Tim Cook prayed for a post-earnings banal plaything akin to Meta's.

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Key Facts

Apple raked successful $117.2 successful gross successful the three-month play ending December 25, its first year-over-year diminution since 2019 and a 5% alteration from the aforesaid timeframe past year, and tallied $30 cardinal successful nett successful the period, oregon $1.88 per share, an 11% decline.

That falls good abbreviated statement expert estimates of $121.4 cardinal successful income and $1.94 net per share, according to FactSet.

Apple brought successful $20.8 cardinal from services, specified arsenic iCloud and AppleTV+, and $06.4 from products during the quarter, with iPhones accounting for a bulk of merchandise revenues pursuing the iPhone 14 launch.

The institution reported $65.8 cardinal successful iPhone income successful the quarter, an 8% alteration from the aforesaid play a twelvemonth anterior and abbreviated of expert expectations.

Shares of Apple slipped astir 4% successful aft hours trading.

Big Number

$2.4 trillion. That was Apple’s marketplace capitalization astatine Thursday’s marketplace close, by acold the largest of immoderate nationalist company. Apple mislaid astir $100 cardinal successful marketplace headdress based successful aft hours trading.

Key Background

Apple banal suffered done its worst twelvemonth since 2008 past twelvemonth arsenic the planetary system weakened, declining 27%, outperforming the tech-heavy Nasdaq but acold underperforming the Dow Jones Industrial Average and the S&P 500. Profits for the Cupertino, California-based institution grew by 5.4% successful the 12 months ending successful September 2022, compared to 65% maturation successful the anterior 12-month period. Much of the slowdown came arsenic demand for the iPhone 14 fell abbreviated of capitalist hopes, portion Covid-related accumulation issues successful China weighed connected supply. Apple banal could beryllium a “tale of 2 halves successful 2023,” Bank of America expert Wamsi Mohan wrote successful a enactment to clients previewing earnings, predicting shares could rally connected the backmost of “new merchandise momentum” arsenic the institution reportedly angles to motorboat a mixed world headset aboriginal this year.

Surprising Fact

Apple slashed its compensation bundle for its CEO Tim Cook by much than 40% this year, cutting his people wage to $49 million, with $9 cardinal successful wage and bonuses and $40 cardinal successful banal awards. Cook is worthy $1.8 billion, according to Forbes’ latest estimates.

Tangent

Fellow tech giants Alphabet and Amazon besides reported net aft the doorbell Thursday. Shares of the Google genitor and the commerce elephantine sank aft each institution posted lagging quarterly profits. Facebook genitor Meta notched its second-best regular banal summation ever Wednesday aft divulging its ain quarterly fiscal results, making its CEO Mark Zuckerberg $12 cardinal richer.