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.
Put another way, just think where these numbers WILL be going forward.
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.
“Apple is missing Back to School big time…who wants [M1] when M2 is released.”
Would it be better if they hadn’t released the M2? Because that’s the alternative. Nobody does high quality mass production better than Apple, so if they can’t do it, it can’t be done.
I’m sure they’re pushing production capacity as hard as they can. In the meantime, Mommy’s little darling will just have to settle for lugging around an M1….
I’m not worried about M-2 availability
Good take!
‘…iPhone 14 will debut near close of Quarter IF production ramps are ready…”
I think that’s the “buried message”, if there is one. Because there were no iPhones sold in fy Q3 last year, any iPhone sales in fy Q3 this year should make for an easy compare. I think production capacity is still shaky across the board, so my guess is that we’ll see something like a repeat of last year’s “late” iPhone release.
IMHO, Increasing production capacity across the board is Apple Job #1 right now.
Convincing China to ditch their home grown Covid vaccine should be priority #1.
Yeah, good luck with that….
In the last quarter, factories shut down, workers were shut out, production halted or severely curtailed. I think they and Apple suppliers / assemblers have learned / realized they can mitigate that largely by cloistering workers at/near the factories and shut out outside contacts allowing factories to keep running if maybe at slightly reduced levels.
The other factor is current Omicron variants are more contagious but much less lethal or virulent…so far. The entire world still needs to remain vigilant regarding any new Covid variants which combine Omicron infectivity with Delta deadliness. With that combo, the still vast pool of unvaccinated or waning immunity would be at huge risk and infections would soar due to lax masking and contact precautions, especially as many have sought normality to their daily lives. As an example, one of our nurses traveled to NorCal for a funeral with 4 others in her car, attended a viewing, funeral mass in a large Catholic Church, graveside, and reception at a relative’s home & traveled back. Masking was done at the event but off during some of the reception and drive up and home. 3 days later she tests positive and turns out so do at least 6 of her relatives up north. Other attendees not relatives are unknown. Oddly, none of her car passengers have tested positive now a week later so maybe my nurses viral load was insufficient to spread even in the closed confines of a car. Just shows that public or private gatherings can still turn out to be spreader events. Again, luckily, current California Omicron variants are much less virulent so most have not needed hospitalization, just reasonable isolation and symptomatic treatment. An advantage we have here in California and US is availability of oral Covid treatment meds like Paxlovid for older and / or at risk populations. I don’t know if China has anything similar.
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.
To me, it sounded like they were struggling to avoid giving out too much guidance. If that came across as optimism, then that’s a plus!