Apple stock price on watch following quarterly results

Apple has released its quarterly update. Here's how it performed.

| More on:
2 people using their iPhones

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

All eyes will be on the Apple Inc (NASDAQ: AAPL) stock price this evening after the tech giant released its quarterly update.

As things stand, after-hours trading is pointing to the iPhone maker's shares dropping into the red when Wall Street opens for business.

Apple stock price on watch following revenue decline

  • Quarterly revenue of US$81.8 billion, down 1% year over year
  • Gross margin of 44.5%
  • Quarterly earnings per share (EPS) up 5% to US$1.26
  • Operating cash flow of US$26 billion
  • Quarterly dividend of 24 US cents per share

For the three months ended 1 July, Apple reported a modest 1% decline in quarterly revenue to US$81.8 billion. This was driven by softer sales across iPhones, Macs, and iPads, which offset growth in other products and services.

The latter was arguably the highlight of the result, growing 8% year on year to a record high of US$21.21 billion. This means that Apple's services business now accounts for approximately 26% of total revenue.

This side of the business includes services such as iCloud, Apple Music, Apple Pay, Apple Fitness, and Apple Arcade.

How does this compare to expectations?

Despite the market's lukewarm response, Apple's result was actually slightly ahead of expectations.

For example, according to CNBC, the market was expecting revenue of US$81.69 billion and earnings per share of US$1.19.

Apple has beaten on both metrics with revenue of US$81.8 billion and earnings per share of US$1.26.

Management commentary

Apple's CEO, Tim Cook, was pleased with the quarter and particularly the performance of its services business. He said:

We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone.

From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.

Apple's CFO, Luca Maestri, adds:

Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment.

During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.

So why the weakness? Well, that could be its outlook commentary. CNBC reports that Maestri advised on Apple's earnings call that revenue was expected to fall in the current quarter.

The Apple stock price is up 15% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »