Apple's better-than-expected Q3 2022 in five easy charts

Expectations were modest, and Apple beat them modestly in both the top and bottom lines.

iPhone sales and Services revenue contributed to record Q3 revenue. Net income and EPS both fell year over year. The stock, which closed at $157.35 popped more than 4% in after-hours trading.

From the press release:

CUPERTINO, CALIFORNIA JULY 28, 2022 Apple today announced financial results for its fiscal 2022 third quarter ended June 25, 2022. The Company posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20.

“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”

“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category,” said Luca Maestri, Apple’s CFO. “During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on August 11, 2022 to shareholders of record as of the close of business on August 8, 2022.

The earnings call had audio difficulties. Restarted at 4:04.

Cue the charts.

16 Comments

  1. Bart Yee said:
    Luca believes supply better, margin to contract a bit (Forex and mix, higher Opex, probably due to ramping up for iPhone 14). Suggests revenue growth will continue.

    5
    July 28, 2022
  2. Bart Yee said:
    I’m buoyed by iPhones selling stronger than consensus expected. I modeled 46.2M (vs consensus of 43-46M depending on analysts) units at $870 per giving $40.19B and that was low, actual being $40.665B, so either more units sold (46.74M), or higher ASP ($880, “favorable mix”), either of which is a positive for demand in a typically softer quarter.

    Confident that Apple has prioritized iPhone production to meet demand (and fuels services) in lieu of iPads and Macs, but fear not, back to school season is coming, and Luca already hinted that Apple has some tasty tempting products (TTP) and deals for that market. As gas prices have been recently retreating, may have a bit more discretionary spending available.

    Of course, the iPhone 14 will debut near close of Quarter IF production ramps are ready – or just put it all into Q1 2023.

    3
    July 28, 2022
    • Roger Schutte said:
      No, No, No! Apple is missing Back to School big time with the 4 week shipping delay on the M2 MacBook Air. M1 Air’s are available now but who wants those when M2 is released.

      1
      July 28, 2022
  3. Gregg Thurman said:
    I’m encouraged by the questions the newer cadre of analysts asked, especially MS’s Woodring. They seemed smarter than past questioners.

    To me it sounded like Maestri and Cook were trying hard to not sound very optimistic, but failing in their efforts.

    My estimate for this quarter failed on my Covid and FX impacts. Looks like Apple 3.0 estimates were generally way to high as well. WS did much better than usual. Was that because Apple finally performed to their historic low ball estimates (broken clock is correct twice a day)?

    After hours AAPL has traded as high as $164.01. Haven’t seen prints like that since March.

    4
    July 28, 2022
  4. Steven Philips said:
    And I just have to say “Geau Jerry!” Make a believer out of me with your EOY prediction. Make me apologize for ever doubting your numbers. AAPL has already hit my pessimistic prediction. (After hours.)

    0
    July 28, 2022
    • Steven Philips said:
      Oops! Mistyped & didn’t hit the “x”.

      0
      July 29, 2022
  5. Excellent job with the 5-year charts. A Q3 or Q4 drop in diluted eps is sometimes a part of Apple’s long dance skyward. Almost $45 billion in share buybacks (at recent prices) over the last 2 quarters. A total of $686 billion returned to shareholders while I’ve held shares. Name me another.

    1
    July 29, 2022

Leave a Reply