The ups and downs of Apple’s revenue, earnings per share, iPhone sales, services and wearables.
Apple beat expectations pretty much across the board, with revenue up 11% and earnings up 25% against tough compares. The stock immediately popped to more than $165 and reached $168 shortly after the analysts call.
From the press release:
Apple today announced financial results for its fiscal 2022 first quarter ended December 25, 2021. The Company posted an all-time revenue record of $123.9 billion, up 11 percent year over year, and quarterly earnings per diluted share of $2.10.
“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Tim Cook, Apple’s CEO. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”
Below: The five charts. Click the second column to see year-over-year growth. (Not seeing the charts? Try the website.)
“What would I do? I’d shut it down and give the money back to the shareholders,” Michael Dell said before a crowd of several thousand IT executives.
https://www.cnet.com/news/dell-apple-should-close-shop/
Well, he’s partly right ( like a broken clock). Apple is giving its shareholders money back (Buybacks, dividends….)
$7.6 B adding to their cash instead of buying $7b more stock 🙁
Yep. Some of us here have been pointing that out for some time….
Q1 2020 was $99B
Q2 2020 was $83B
Q3 2020 was $81B
Q4 2020 was $79B
Q1 2021 was $84B
Q2 2021 was $83B
Q3 2021 was $72B
Q4 2021 was $66B
Q1 2022 was $80B
I think Q2 will be pretty amazing too due to those constrained iPad sales being realized. Phone buyers may go elsewhere but there is nothing similar to iPad which probably explains why they prioritized iPhone production.
Thanks!
Looks like they pulled down some $20 B between Q1 and Q4 for fy 2020, taking it down to $79 B. Then they pulled down some $18 B between Q1 and Q4 for fy 2021, taking it down to $66 B. If they can repeat that, they should touch net zero briefly in Q4 fy 2024 or 2025.
What then? By rights, they should reduce their buybacks by about $20 B/year. If that went into dividends, and assuming 15 B shares by 2025, then that would represent an extra (20/15=) $1.33/share in dividends per year.
have they mentioned in the call to what degree they were supply constrained?
if the $6bn+ figure mentioned 3 months ago held true then it would have been a $130bn quarter.
The only area with supply constraints that they mentioned was iPads. But it was largely thought here that iPads were “sacrificed” to try and meet iPhone demand.
Q2 ‘13 26.3b (peak shares)
Q4 ‘13 25.3b
Q4 ‘14 23.7b
Q4 ‘15 22.6b
Q4 ‘16 21.5b
Q4 ‘17 20.6b
Q4 ‘18 19.2b
Q4 ‘19 18.0b
Q4 ‘20 17.1b
Q4 ‘21 16.5b
Q1 ‘22 16.4b
37.7% of peak shares retired.
If net income were unchanged vs. Q2 ‘13, profits per share would be up 60.5% based on lower share count alone.
Net Cash Q2 ‘18=$163b (Peak cash)
Net Cash Q1 ‘22= $79.7b
EPS FY 2021 vs FY 2013 296% increase
That sure validates, paid vs. free-you-are-the-product, approach eh?
So the cup is half empty. And the Cook himself comes out to pour more fine wine.
My compliments to the Chef.
Outside these markets, iPhones and all other Apple products are in the minority. Hence WeChat and WhatsApp and non-Apple payment systems etc. are the norm. But just as Apple devices went from pariah status to preferred in the enterprise, over a two decade time, Apple can become more integrated. It may take decades… decades of steady growth that no analysts will see for years to come.
Plenty of room to grow in other places also. However, just like mobile, it is being adopted much faster than in the US.
It is just so fun to watch.
Great, but what if continued success earned APPL a P/E ratio of 30? That would take us to $171.7.
But what if it really earned us a progressive P/E ratio of 35 (like, for a company that is leading the bleeding edge and has huge financial resources and an already huge installed user base).
That would get us to the $200/share that AAPL truly deserves today, with room to grow into and beyond the bullish prognostication.
Bring it! Let’s go!
-Tim did NOT like Katy’s question about about “rethinking the broader supply chain chain strategy.” At least that was my interpretation. With TC’s supply chain expertise, that was a poorly posed question.
-“ Our business continues to generate very strong cash flow, and we’re also able to return nearly $27 billion to shareholders during the December quarter. This included $3.7 billion in dividends and equivalents and $14.4 billion through open market repurchases of 93 million Apple shares. We also began $6 billion accelerated share repurchase program in November, resulting in the initial delivery and retirement of 30 million shares.”
The above is about $24 billion. Am I correct to assume the balance went to employee stock options?
Lots to unpack this week, though.