Apple’s explosive March 2021 quarter in five easy charts

The ups and downs of Apple’s revenue, earnings per share, iPhone sales, services and wearables.

apple earnings smackdown q2 2021Apple blew past even the most optimistic Wall Street estimates Wednesday, reporting double (and in the case of EPS, triple) digit growth across the board. The stock popped more than 4% in after hours trading.

From the press release:

Apple® today announced financial results for its fiscal 2021 second quarter ended March 27, 2021. The Company posted a March quarter record revenue of $89.6 billion, up 54 percent year over year, and quarterly earnings per diluted share of $1.40. International sales accounted for 67 percent of the quarter’s revenue.

“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Tim Cook, Apple’s CEO. “Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world. That certainly begins with products like the all-new iMac and iPad Pro, but it extends to efforts like the 8 gigawatts of new clean energy we’ll help bring onto the grid and our $430 billion investment in the United States over the next 5 years.”

“We are proud of our March quarter performance, which included revenue records in each of our geographic segments and strong double-digit growth in each of our product categories, driving our installed base of active devices to an all-time high,” said Luca Maestri, Apple’s CFO. “These results allowed us to generate operating cash flow of $24 billion and return nearly $23 billion to shareholders during the quarter. We are confident in our future and continue to make significant investments to support our long-term plans and enrich our customers’ lives.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock, an increase of 7 percent. The dividend is payable on May 13, 2021 to shareholders of record as of the close of business on May 10, 2021. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.

No formal guidance.

Apple’s Consolidated Statement of Earnings.

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





48 Comments

  1. bas flik said:
    40% mis for the pro’s. hows possible.

    7
    April 28, 2021
  2. John Konopka said:
    Crushed every other Q2 earnings. Mac and iPad numbers are eye-popping. Just wait till the M1 iPad and M2 Macs go on sale.

    7
    April 28, 2021
    • Bart Yee said:
      @John “Crushed every other Q2 earnings. Mac and iPad numbers are eye-popping. Just wait till the M1 iPad and M2 Macs go on sale.”

      This quarter’s overall gross revenue crushed all Q1 quarters except 2020 and 2021, and it was only 2.5% below Q1 2020’s record of $91.82B while exceeding Q1 2018 by 1.5%, astounding!

      1
      April 28, 2021
  3. Jerry Doyle said:
    Nobody, professional or Independents were close! Unbelievable!

    8
    April 28, 2021
  4. Robert Harris said:
    Can’t wait to read the Goldman comments how stocks overpriced or the negative nellies who will soon find a way to say apple is dead and boring like the NYT

    8
    April 28, 2021
  5. Michael Goldfeder said:
    Rod Hall will announce an “emphatic sell rating.”

    9
    April 28, 2021
  6. Troy Thoman said:
    3rd best quarter of all time including Christmas quarters. and with the share buy backs the EPS graphs impress me more 118% eps growth yoy. Buy back more stock!!!

    4
    April 28, 2021
  7. David Drinkwater said:
    Did I say $1.14 in earnings? I’m sorry that was a typo. I think my finger dropped and pushed down on the “1” key.

    I’m still trying to pick my jaw up off the floor.

    $0 76 at a multiple of 35X should push a $26 price bump!

    Wow.

    5
    April 28, 2021
  8. Ralph McDarmont said:
    Awesome as expected. But I am clinically greedy and was hoping for a $10 bounce. I guess that will take a week. Short sellers are forming a line to jump off a bridge.

    6
    April 28, 2021
  9. Mark Visnic said:
    Apple’s sales beat of $12.3 billion was more than the revenue of 440 of the S&P 500 companies last quarter, Bloomberg’s Tom Contiliano notes.

    7
    April 28, 2021
  10. Kathy Corby said:
    Stock price started down as Lucca began to discuss guidance. Looks like the Street wanted more. Greedy.

    8
    April 28, 2021
    • Robert Harris said:
      Streets never happy with Apple

      4
      April 28, 2021
    • Alan Birnbaum said:
      At least it’s not Negative like last stellar qtr

      3
      April 28, 2021
  11. Mark Visnic said:
    FB up 6.4% and QCOM 5.5%; AAPL 2.3%

    GME was up today.

    Markets are inefficient.

    5
    April 28, 2021
  12. Kathy Corby said:
    Absolutely agree with you, Joseph. I personally am hoping for the street to decide Apple is doomed for about one day so I get to profit on my hedges, and then for the beautiful kinda melt-up we have all profited from in the past. Melt-ups. Mmm good.

    7
    April 28, 2021
  13. ‘ sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world.´ Dude never loses focus, ever. Future CEOs will still study the man’s management style decades from now. Go Tim Cook & Apple, Inc.! You earned this!

    10
    April 28, 2021
  14. Gregg Thurman said:
    But I am clinically greedy and was hoping for a $10 bounce.

    I posted this on the “Premarket: Apple was red, turned green” thread just before the Close:
    “With today’s prints, AAPL has traded lockstep with 10-year average trends.
    If that trend continues post-earnings then AAPL will gain about $12 in the next two weeks.”

    Looks like we will get more than a $12 bump in the next two weeks.

    7
    April 28, 2021
  15. Fred Stein said:
    EPS for the 1st quarters was $3.08.

    EPS for all 2020 was $3.28

    5
    April 28, 2021
    • Troy Thoman said:
      Should hit $4.60-4.90 in EPS for the year… That’s a 29 P/E at the low end, 27 on the high end. To maintain a 36 P/E the stock would need to be at $176, and with this growth, why wouldn’t the market allow for the 36 P/E?

      5
      April 28, 2021
  16. Ralph McDarmont said:
    Tim is fixing the supply bottleneck. Apple will simply fabricate everything, starting with chips. Everything but glass, but who knows? Apple has the cash and brainpower to do anything. Adios China and Foxconn.
    “We don’t need no stinking suppliers or assemblers.” (Fake quote by me.) Cook’s announcement to dump a half-trillion into the US economy is proof he is done screwing around with China. He knows China very well.

    4
    April 28, 2021
    • Troy Thoman said:
      The US investment is not for production, it’s R&D. At least as of now. I doubt with what happened with Foxtron in Minn, that there will be any quick return of production to the US.

      4
      April 28, 2021
      • Bart Yee said:
        @Troy “The US investment is not for production, it’s R&D. At least as of now. I doubt with what happened with Foxtron in Minn, that there will be any quick return of production to the US.”

        Um, isn’t that Foxconn in Wisconsin? And after a revamped incentive deal announced April 19, perhaps there will still be some useful purpose for a Foxconn factory eventually? One can hope although it will likely take some Apple prodding or project to move it along.

        1
        April 28, 2021
        • Troy Thoman said:
          Yeah, close enough 😉
          The NC and Austin investments likely will be mostly R&D though. I think Apple got burned with those furnaces in Arizona and now with the Foxconn factory… might make them think twice before getting involved in manufacturing again.

          2
          April 28, 2021
  17. Daniel Epstein said:
    Interesting trajectory on Apple’s expenditures on stock buybacks, dividend and investments over the next few years. Company is practically a stimulus package for the country on its own. They announced some of this before earnings which should have been a tell at least for their confidence going forward. Also looks like the M1 chip and services have pushed the profit margin percentage higher.

    5
    April 28, 2021
  18. Troy Thoman said:
    Also with revs at all-time highs, Margin is also at the highest level I can remember (and forecasted to stay there by Luca)… that = amazing things to come.

    4
    April 28, 2021
  19. Bart Yee said:
    @Daniel and Troy
    Agreed, hardware margins probably moved up due to Apple silicon replacing a lot of extra parts, a very cost effective iPhone 12 series, high overall product demand, especially higher margin accessories, and good growth boosted effects of high margin (65+%) services, all big pluses.

    M1 is having and will have a persistent positive effect on hardware margins as it greatly simplifies parts acquisition, supply, and assembly, all leading to better profitability.

    1
    April 28, 2021
    • Bart Yee said:
      From Luca:
      “Company gross margin was 42.5% percent, up 270 Basis points from last quarter, driven by cost savings, a strong mix, and favorable foreign exchange. Products gross margin was 36.1% percent, growing 100 Basis points sequentially, also thanks to cost savings and effects partially offset by seasonal loss of leverage. Services gross margin was 70.1%, up 170 basis points sequentially, mainly due to a different mix.”

      The foreign exchange tailwind was discussed in Q1 call, some estimated a ~3% tailwind. We can see improving product margin and much higher Services gross margin. Cook has been telling anyone who would listen that Apple is simply not just a hardware company anymore and high margin repeat and continuing Service revenue is here to stay. Yes, there could be some future regulatory questions but the fundamental services business is firmly established and working.

      Pity so many pro analysts don’t want to listen to Cook.

      1
      April 28, 2021
      • Bart Yee said:
        “ During the March quarter, we added more than 40 million paid subs sequentially and we have now reached more than 660 million paid subscriptions across the services on our platform. This is up 145 million from just a year ago and twice the number of paid subscriptions we had only two-and-a-half years ago.”

        Services momentum.

        1
        April 28, 2021
  20. Bart Yee said:
    “As we continue to execute an extremely high level, we were also able to return nearly $23 billion to shareholders during the March quarter. This included $3.4 billion in dividends and equivalents and $19 billion through open market repurchases of 147 million Apple shares. We continue to believe there is great value in our stock and maintain our target of reaching a net cash neutral position over time.“

    Avg buyback share price = $129.25. Apple still believes shares are undervalued and today’s report shows why. Even though Apple “only” bought back $19B worth, down from Q1’s $24B expenditure, they reupped their buyback program ensuring a further 3.5-4% shares outstanding reduction.

    2
    April 29, 2021
  21. bas flik said:
    high avg price for buybacks. buyback team maybe need some advice from us.

    1
    April 29, 2021
    • Bart Yee said:
      @bas Buybacks were what they were, purchases throughout the quarter. For most of January through Feb 19, prices were decidedly over $129.5. For the last 5 weeks of the quarter, prices pulled back to $120-$125 for the most part. So Apple did what it could and got the $129 average, mostly because the purchases are set up on plan, not timed.

      When the Q2 10Q report comes out, I’ll pull the monthly buyback purchase detail out and post it here for discussion.

      1
      April 29, 2021
  22. bas flik said:
    this blog proofed to have more feeling for apple price than the street.

    1
    April 29, 2021

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