Apple Beats The Street With Record First Quarter Results
The iPhone and Mac maker reported earnings before certain costs such as stock compensation of $1.20 per share, down 8% from a year earlier. Revenue reached $83 billion, a new company record for the third quarter, with net income coming to $19.44 billion, down from $21.74 billion one year ago.
Apple beats the Street with record first quarter results
But Wall Street is still expecting a near-record sales quarter for the Cupertino, California company's signature device when it reports fiscal first-quarter earnings on Wednesday, with estimates of $59.8 billion, according to IBES data from Refinitiv as of January 26. If Apple beats the number, it could eclipse its all-time record of $61.58 billion in iPhone sales for the first quarter of fiscal 2018.
Analyst also expect strong Mac sales of $8.69 billion, according to Refinitiv data from January 26, thanks in part to the introduction of models with the first central processor chip for its laptops and desktop that Apple designed itself. Overall, analysts expect $103.28 billion in sales and earnings per share of $1.41 for Apple's fiscal first quarter.
The ability of the ECG app to accurately classify an ECG recording into AFib and sinus rhythm was tested in a clinical trial of approximately 600 subjects, and demonstrated 99.6% specificity with respect to sinus rhythm classification and 98.3% sensitivity for AFib classification for the classifiable results.
Another pandemic darling, Netflix, saw its shares drop roughly 75% from its record-high in November after losing 200,000 subscribers in its first quarter, with projections to lose more than 2 million more in the second quarter due to growing competition. The market value of Zoom, a popular virtual conferencing company that people relied on to stay connected while working from home or attending school, has dropped to $26 billion, slightly less than its value before the pandemic.
Apple Inc on Thursday reported record sales in the holiday quarter, beating estimates due to high iPhone demand and growing subscribers, even as a chips shortage that it said has begun easing cost it over $6 billion in revenue. Apple shares rose over 3% to $164.30 in after-hours trading. But they have been down 10% this year, in line with the broader market, as investors reconsider stocks that have soared during the pandemic and shift funds toward safer assets.
The record results for the quarter ended Dec. 25 reflected what analysts have described as Apple taking advantage of its incredible size. The company, which has more than 1.8 billion active devices in the market, has been able to squeeze suppliers and manufacturers to produce big quantities of iPhones and other devices despite shortages brought on by the pandemic and most recently the Omicron variant. "They've navigated the supply chain better than everybody, and it's showing in the results," said Ryan Reith, who studies the smartphone market for industry tracker IDC.
Apple's smartphone market share in China reached a record 23% in the holiday quarter, when it was the top-selling vendor there for the first time in six years, research firm Counterpoint Research reported on Wednesday. The company's overall fiscal first-quarter revenue was $123.9 billion, 11% up from last year and higher than analysts' average estimate of $118.7 billion. Profit was $34.6 billion, or $2.10 per share, compared with analysts' expectations of $31 billion and $1.89 per share.
Beats was established in 2006 by music producer Dr. Dre and record company executive Jimmy Iovine. Iovine perceived two key problems in the music industry: the impact of piracy on music sales and the substandard audio quality provided by Apple's plastic earbuds. Iovine recalled that Dre said to him: "Man, it's one thing that people steal my music. It's another thing to destroy the feeling of what I've worked on." Iovine sought the opinions of musicians with "great taste", such as M.I.A., Pharrell Williams, will.i.am, and Gwen Stefani during the early developmental stage. Beats initially partnered with inventor Noel Lee and his company Monster Cable, an audio and video component manufacturer based in Brisbane, California, to manufacture and develop the first Beats-branded products, and debuted its first product, Beats by Dr. Dre Studio headphones, on July 25, 2008.
The Beats Solo Pro is an on-the-ear style headphone. Along with the Powerbeats Pro true-wireless earphones, they are part of a new generation of Beats products made from the ground up with Apple. They are the first on-ear headphones made by Beats to feature active noise canceling. They were sold alongside the Solo 3 until November 1, 2021.
Before these earnings are available to the public, "wall street analysts" come up with estimates on how they expect companies to perform. If a company beats these analyst expectations ("earnings beat"), this usually sends the stock up. On the other hand, if a company fails to meet analyst estimates, a drop in the stock price usually follows.
Apple also delighted the market in October 2022 by revealing a fourth-quarter revenue record of $90.1bn, with quarterly earnings per diluted share of $6.11, up 9% year over year. It also declared a cash dividend of $0.23 a share of its common stock.
GQG Partners finished the first quarter with $43.1 billion invested in 72 managed 13F securities. This was after the investment advisor reduced its holdings in 17 stocks over the three-month period, including its stake in Visa (V (opens in new tab), $212.94). With the sale of almost 7 million shares, Visa's weighting in the Ft. Lauderdale advisory firm's large portfolio was reduced from 6.07% as of Dec. 31, 2021, to 2.22% at the end of March.
Winslow Capital Management had $23.1 billion in managed securities in its first-quarter 13F. Apple (AAPL (opens in new tab), $146.14) was its largest reduction in terms of the number of shares sold without completely closing out of the position. Interestingly, the Minneapolis-based hedge fund retained 2,386 shares of Apple that were worth $417,000 at the end of March. Perhaps that's to lay the groundwork for building a position in the iPhone maker in the future.
Out of the 12 stocks David Einhorn's Greenlight Capital closed out in the first quarter, Jack in the Box (JACK (opens in new tab), $69.48), a California-based burger chain, was his largest holding at the end of December, with a 1.06% weighting. Einhorn first acquired JACK shares in Q2 2020, paying an estimated $86.89 a share.
Of the 656 stocks it exited in the first quarter, Micron Technology (MU (opens in new tab), $70.45) was the second-largest position in terms of percentage of the hedge fund's portfolio at the end of December, with a 0.47% weighting, behind only Microsoft at 0.98%. Renaissance first acquired Micron shares in Q4 2018.
Renaissance Technologies is estimated to have paid an average of $89.87 a share for its position in Micron. On a few occasions in the first quarter, Micron's share price reached above $95. The hedge fund likely used its first-rate machine learning capabilities to get out with a profit in hand.
Does the predicted first decline in iPhone sales in the current quarter really signify the beginning of the end of a technological era ushered in by the market-leading, life-changing iPhone? This is open to debate, because it is difficult to say how dim the global growth prospect will become and whether Apple can wow the world again with another wonderful product.
Apple sold 74.8 million iPhones in its fiscal first quarter ending in Dec 26. Though its sales did not beat market expectations and net income increased only 2 percent, the lowest year-on-year quarterly growth since the introduction of the lifestyle-changing handsets in 2007, Apple still made $18.4 billion in profit in the last quarter of 2015, beating the record it had set a year earlier.
(AP) -- Cost-cutting and the lure of the iPhone softened the effect of the weak economy at AT&T Inc., helping the country's biggest telecommunications carrier beat analyst estimates for the first quarter. googletag.cmd.push(function() googletag.display('div-gpt-ad-1449240174198-2'); ); AT&T said Wednesday it earned more than $3.1 billion, or 53 cents per share, in the first three months of 2009, down 10 percent from almost $3.5 billion, or 57 cents per share, a year earlier.The earnings were reduced by 5 cents per share for increases in pension and retiree expenses. Excluding that item, the earnings were 58 cents per share. The average estimate of analysts polled by Thomson Reuters, which generally excludes one-time items, was for earnings of 48 cents per share.Despite strong wireless sales, AT&T says revenue slipped to $30.6 billion from $30.7 billion a year ago. That was short of analyst expectations for $31.1 billion.Revenue fell because the weak economy exacerbated the long-running decline of AT&T's landline business. Sales of traditional fixed phone service fell 12 percent to $8.7 billion.AT&T shares rose 85 cents, or 3.3 percent, to $26.13 in midday trading.Even as revenue declined, Dallas-based AT&T improved its overall profit margin slightly, helped by the continuing process of integrating BellSouth Corp., which it bought in 2006. It has also reduced its work force by 8,000 people since the beginning of the year, mainly by cutting jobs on the wired side of the business. It had 294,600 employees at the end of the quarter.AT&T added a net 875,000 customers under contract in the first three months of the year, hundreds of thousands more than expected by analysts. Of the new customers, about three-quarters chose Apple Inc.'s iPhone, for which AT&T is the exclusive U.S. carrier.The iPhone has been a drag on AT&T's earnings since last summer, when the latest model, the "3G," lau