- Apple’s revenue for the second quarter reached $95.36 billion, a 5.1% increase year-over-year, surpassing the estimate of $94.59 billion.
- Product revenue grew by 2.7% to $68.71 billion, beating the estimated $67.84 billion.
- iPhone revenue increased by 1.9% to $46.84 billion, exceeding the estimate of $45.94 billion.
- Mac revenue rose by 6.7% to $7.95 billion, surpassing the estimated $7.75 billion.
- iPad revenue jumped by 15% to $6.40 billion, outperforming the $6.12 billion estimate.
- Revenue from wearables, home, and accessories decreased by 4.9% to $7.52 billion, below the $8.05 billion estimate.
- Service revenue grew by 12% to $26.65 billion, slightly under the estimate of $26.72 billion.
- Revenue from Greater China fell by 2.3% to $16.00 billion, below the estimate of $16.83 billion.
- Earnings per share (EPS) were $1.65, higher than last year’s $1.53 and above the estimate of $1.62.
- Total operating expenses were $15.28 billion, up by 6.3% year-over-year, exceeding the estimate of $15.17 billion.
- The gross margin increased by 6.1% to $44.87 billion, slightly above the $44.58 billion estimate.
- Cash and cash equivalents reduced by 14% to $28.16 billion, below the estimated $32.73 billion.
- Total current assets declined by 7.6% to $118.67 billion, lower than the estimated $138.36 billion.
- Total current liabilities rose by 17% to $144.57 billion, exceeding the estimate of $133.04 billion.
- Apple achieved EPS growth of 8% and generated $24 billion in operating cash flow, enabling a $29 billion return to shareholders, as stated by CFO Kevan Parekh.
- The company reached a new all-time high in the installed base of active devices across all product categories and geographic regions, highlighting customer loyalty and satisfaction.
- Investment recommendations for Apple include 36 buys, 21 holds, and 3 sells.
Apple on Smartkarma
On Smartkarma, a hub for independent investment research, analysts are closely monitoring Apple’s latest developments. Baptista Research highlighted the challenges Apple faces with tariffs and supply chain disruptions, causing a significant market capitalization drop and stock plunge. In contrast, The Circuit discusses Apple’s focus on improving battery life and modem efficiency in the entry-level iPhone 16e, targeting price-sensitive customers. Moreover, Caixin Global reports on Apple’s collaboration with Alibaba to enhance AI features in iPhones for the Chinese market. Baptista Research also sheds light on Apple’s solid revenue forecast, easing concerns after a slight decline in iPhone revenue and mixed holiday results.
Vincent Fernando, CFA, in their analysis, focuses on the impact of Apple’s strong first-quarter results on Taiwanese suppliers like Zhen Ding and Kinsus Interconnect. These suppliers are expected to benefit from Apple’s AI advancements, especially with the increasing complexity of PCBs and interconnect solutions required for advanced Apple products. The diverse analyst coverage on Smartkarma provides insights into the various facets of Apple’s operations and challenges, keeping investors informed about the tech giant’s trajectory in a dynamic market environment.
A look at Apple Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
An investment analyst looking at the Smartkarma Smart Scores for Apple Inc. sees a mixed long-term outlook for the tech giant. Apple scores average marks across the board with a Value and Dividend score of 2, indicating a moderate valuation and dividend outlook. The company’s Growth, Resilience, and Momentum scores sit at 3, reflecting a somewhat positive sentiment in terms of future growth potential and market resilience.
Apple Inc., known for its wide range of consumer electronics products and digital services, caters to various market segments globally. While the Smart Scores suggest a decent outlook overall, the company’s future performance may be influenced by how it capitalizes on its growth opportunities and navigates market challenges in the tech industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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