Apple Inc. ($AAPL) Earnings (Q4 FY22)

 Apple Inc. ($AAPL) Earnings and Opinion:


Apple is a company in the Technology sector and operates in the Consumer Electronics industry. The company designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Apple was incorporated in 1977 and is currently headquartered in Cupertino, California. The company made its debut on the stock market in 1980.

Apple Financial Results:

  • Revenue of $90.15B beating expectations of $88.64B
  • Gross Margin of 42.26% beating expectations of 42.18%
  • Operating Margin of 27.62% beating expectations of 27.51%
  • Diluted EPS of $1.29 beating expectations of $1.26
Opinion:
Apple has failed to find any sense of direction after reporting earnings. The company reported earnings after the market closed this afternoon. Apple is now headed for its best day of trading since 2020. The CFO warned that sales may decline in the next quarter with consumer sentiment going down. The company has been seen as an outlier to all of its tech peers, as the company has performed a lot better and hasn't been affected as much by the economic challenges. A lot of concern came out when the company reported that they were going to raise its prices on Music and Apple+, but that should help offset the rising costs. I think it is very impressive that the company has been able to perform so well in such a volatile environment. The company is also bearing down and becoming strict on their data policies in the app store as well. It seems as a lot of things are going right for Mac right now, we just have to see what kind of results come about next quarter. The company was carried by its Mac sales, that beat expectations by 24.42%. You can tell some things slowed down, but the company released the new Iphone earlier this year, to try and boost its Q1 results and start off the year strong. As far as valuation goes, the company seems to be overvalued a little bit. The P/E ratio sits at 25.41, which is higher than peers median. EV/EBITDA is at 18.54, which is also higher. The thing about Apple, is you don't really invest solely on valuation. The company has some solid growth still left to go, and the future looks pretty bright for them. In my opinion, Apple has established itself as one of the top dogs in the stock market. The company has been able to generate some wonderful returns and the growth still looks promising. I feel safe to say that this is one of the top stocks that should be in your portfolio. I have always loved Apple, and it was the first stock that I ever bought. I am long Apple $AAPL.


*Information from Bloomberg and Yahoo Finance

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