Apple’s not-so-boring Q3 2018 in five easy charts

The ups and downs of Apple’s revenue, earnings, iPhone sales, services and revenue from greater China.

charts q3 2018June may be the sleepiest quarter of Apple’s fiscal year, but Tim Cook and Luca Maestri managed to wake up Wall Street Tuesday evening with big percentage increases on both its top and bottom lines.

From the press release:

The Company posted quarterly revenue of $53.3 billion, an increase of 17 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.34, up 40 percent. International sales accounted for 60 percent of the quarter’s revenue.

“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO. “Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline.”

“Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion,” said Luca Maestri, Apple’s CFO. “We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases.”

The stock, which closed at $190.29, immediately jumped more than $7.20 (3.75%) in after hours trading.

The year-over-year percentage increases in the charts below tell the story:

  • Revenues up 17%
  • EPS up 40%
  • Services up 31%
  • China revenue up 19%

iPhone sales, with only 1% growth year over year,  might have been the skunk at the party. But nobody cared because iPhone revenue was up 20%.

Below: The five charts. Click the second column to see year-over-year growth. (Not seeing the charts? Try the website.)

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13 Comments

  1. Gianfranco Pedron said:

    Time to change the acronym back to FANG, with a single “A”.

    One of the tech stocks is not like the others.

    4
    July 31, 2018
  2. Mark Visnic said:

    Congrats Gentlemen and women!

    4
    July 31, 2018
  3. Oh so happy. Thank you, Tim and Gang.

    For me, the biggest takeaway was the degree of share count reduction. Even with AAPL trading at a historical high quarterly average Apple reduced share count an amazing 5.86% YoY (can we expect this degree of share reduction to continue?). That rate compares to the FQ1 rate of 3.19% and FQ2 rate of 3.67%.

    As a result, my estimate of Apple’s share count reduction was understated, causing a 10¢ EPS miss, even though my revenue estimate missed by only $57 Million (.01%).

    Congrats to everyone that did well with Apple’s earnings report.

    3
    July 31, 2018
  4. Fred Stein said:

    40% YOY EPS growth. That’s a wake up.

    3
    July 31, 2018
    • Michael Thompson said:

      But what about peak iPhone and peak Apple?

      We laugh last.

      2
      July 31, 2018
  5. From Tim’s comments during the conference call comes this tidbit:

    “We feel great about the momentum of our services business and we’re on target to reach our goal of doubling our fiscal 2016 services revenue by 2020”.

    FY2016 Services revenue was $24.347 Billion.

    OK, to me “by 2020” means by the end of 2019. So I compared my model’s full-year Services revenue forecast for FY2019 and it indicates $47.576 Billion. Examining my model in closer detail I believe its projected results are conservative, which means that I think achieving the double goal will occur by the end of FQ3/2019, or 4 quarters from today.

    By then Services will easily be Apple’s second largest revenue stream (17%). That should positively impact the earnings multiple as Services will represent predictable and stable, coupon money.

    1
    July 31, 2018

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