Apple reported the quarterly earnings report after the market close. The EPS for the quarter came $1.29 topping the expectations of $1.26. The revenue came at $90.15 billion beating the consensus of $88.79 billion.
iPhone sales were reported at $42.63 billion below the forecasts of $43.21 billion. Mac revenue came at 11.51 billion well above the expectations of $9.36 billion. iPad revenue disappointed at $7.17 billion, analysts estimate was for $7.94 billion.
Other Products revenue came at $9.65 billion beating the forecasts of $9.17 billion. Services sector revenue came at $19.19 billion below the estimates of $20.10 billion.
Apple’s Gross margin was at 42.3% topping the expectations of 42.1%.
Apple Guidance
In the conference call, Apple’s CFO said that total company revenue will decelerate In the December Quarter compared to the September quarter. Mac revenue will also decline in the holiday quarter and see softness in gaming and digital advertising, a trend that we have already seen in the Google earnings report.
Apple Earnings Analysts Estimates
The analyst’s consensus estimate for the Earnings Per Share is $1.26, up $0.03 from a year ago. The revenue is expected at $88.79 billion, almost 6.5% higher than the same quarter in 2021.
Apple reported $1.20 EPS for the second quarter, beating the consensus estimates of $1.14. The revenue came at $82.96 billion during Q2, up 1.9% on a year-over-year basis, slightly below the forecasts of $82.97 billion. The company reported $6.06 earnings per share in 2021. Price-to-earnings ratio currently stands at 24.8. The dividend yield is at 0.64% and the most recent dividend was $0.23 on August 5, 2022. Earnings for APPL are expected to increase by 6.38% in the full year, from $6.11 to $6.50 per share.
Apple Price
Apple stock is trading at $145.09, with a market capitalization of $2.4 trillion. The price-to-earnings ratio (P/E) is 23.89. Apple stock has lost 18% since the beginning of the year, while the Nasdaq composite lost 30% in the same period. AAPL stock has a 52-week trading range between $129.04 to $182.94. Apple’s all-time high price is $182.94.
Apple stock was rejected two days ago at the 100-day moving average due to selling pressure across the technology sector. Initial support for the stock stands at $141.50 the low from October 19. A break below would open the way for $134.37 the low from October 13.
On the flip side, the stock needs to reclaim the 100-day moving average at 151.27 which is a strong resistance. Above that, the next level to watch is the 200-day moving average at 156.44, which if breached might offer Apple bulls a sustained rally.
Morgan Stanley on October 17, reiterated AAPL stock at Overweight and reduced the price target from $180 to $177, while Credit Suisse on October 13, also reiterated at Outperform and cut the Apple price target from $201 to $190.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
