Apple Reported Positive Third-Quarter Earnings

Jul 29, 2022 By MarketDepth

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Apple (AAPL:NAS) released impressive third-quarter results beating analyst expectations for sales and profit. One negative was Apple did say that they see growth slowing in future quarters.

Apple was up 3% intraday on the news and Amazon also released blow-out results and is up 11% intraday.

Apple did not provide guidance for the quarter, but expectations were to achieve $90 Billion in sales.

“In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness.”

Apple CEO Tim Cook told CNBC’s Steve Kovach

The important numbers for what Wall Street was expecting, per Refinitiv estimates:

  • EPS: $1.20 vs. $1.16 estimated, down 8% year-over-year 
  • Revenue: $83 billion vs. $82.81 billion estimated, up 2% year-over-year 
  • iPhone revenue: $40.67 billion vs. $38.33 billion estimated, up 3% year-over-year 
  • Services revenue: $19.60 billion vs. $19.70 billion estimated, up 12% year-over-year 
  • Other Products revenue: $8.08 billion vs. $8.86 billion estimated, down 8% year-over-year 
  • Mac revenue: $7.38 billion vs. $8.70 billion estimated, down 10% year-over-year 
  • iPad revenue: $7.22 billion vs. $6.94 billion estimated, down 2% year-over-year 
  • Gross margin: 43.26% vs. 42.61% estimated 

Apple’s revenue is up 2% on the quarter but saw 36% growth in the same quarter last year. CEO Tim Cook does see challenges with inflation but will continue to push forward.

“We do see inflation in our cost structure. We see it in things like logistics and wages and certain silicon components and we’re still hiring, but we’re doing it on a deliberate basis.” 

Apple CEO Tim Cook