Shares of Apple Inc (NASDAQ: AAPL) popped up nearly 4.0% in after-hours trading as the iPhone maker reported its financial results for the second quarter that handily topped Wall Street estimates.
Key takeaways from Apple Q2 results
Net income came in at $25 billion versus the year-ago figure of $23.6 billion.Per-share earnings of $1.52 in fiscal Q2 were better than last year’s $1.40.At $97.28 billion, revenue shot up 8.59% YoY, as per the earnings press release.FactSet consensus was for $1.43 of EPS on $93.89 billion in revenue. iPhone revenue jumped 5.5% to $50.57 billion – ahead of Street expectations.$19.82 billion from services topped estimates and was up 17.28%.Mac revenue registered at $10.44 billion versus $9.25 billion anticipated.Gross margin climbed from 43.1% to 43.7% in the recent fiscal quarter.
iPad revenue was also better-than-expected despite a 1.92% annualised decline. Lastly, revenue from “Other Products” grew 12.37% but still fell short of the consensus.
Dan Ives reacts to Apple Q2 earnings report
Apple hasn’t offered guidance for revenue since the start of the COVID pandemic and continued the tradition on Thursday. On CNBC’s “Closing Bell”, Wedbush Securities’ Dan Ives said:
I’ll call it a Mike Trout/Tom Brady like quarter from an iPhone perspective. Services better than whisper. China much better-than-feared. Cupertino continues to put up numbers that are just jaw dropping. Combined with supply chain issues, Apple did much better than anyone would’ve expected.
Dividend, buybacks, and Shannon Saccocia’s remarks
Other notable announcements include authorisation for $90 billion worth of share repurchase in 2022 and a 5.0% increase in dividend to 23 cents a share. The stock is still down nearly 8.0% for the year.
Shannan Saccocia – the chief investment officer at SVP Private, however, remains cautious on Apple for the back half of the year on supply constraints related to COVID shutdowns in China. On the same CNBC interview, she said:
I’m much more concerned about China in terms of the supply rather than demand side with the shutdowns. So, if you look into the second half, I’m not expecting significant upside from the stock, because it’s a consumer stock that has meaningful China exposure.
The post Apple Q2 results: ‘I don’t expect significant upside from AAPL in H2’ appeared first on Invezz.