Apple’s stock outperforms
Apple’s stock has outperformed over the past year. It returned 91.8% overall over the past year, more than the S&P 500’s total return of 46.1%.
Apple Inc. (AAPL) reported earnings for Q2 fiscal year 2021, which easily beat the consensus estimate. The price of Apple stock went up as earnings per share (EPS) of Apple was $1.40, beating the consensus estimate of $ 0.99 by 41.4%. However, Apple stock price today was133.58 USD down by 0.60%.
It allowed $90 billion in authorized share repurchases, up from $75 billion it spent in 2019 and $50 billion in 2020. Apple also announced a 7% increase in its dividend up to $0.22 per share.
Revenue was $89.6 billion, which is 15.8 % better than the $77.4 billion estimate. It was a record revenue for the quarter ended March, up 53.6 percent from a year earlier.
Services revenue of $16.9 billion beat the $15.7 billion estimate by 7.6%. That figure represents a new record for the company in any quarter, up 26.6 percent from a year earlier.
Service revenue is so important to Apple for two reasons. The first is that service revenue is expected and stable, while product revenue is subject to extreme seasonal trends in the retail industry. Second, Apple’s services segment has a much higher gross profit margin than sales of its products.
It just reported that, for Apple’s services segment the margin was 70.1%, and its product segment gross margin was 36.1%, so the revenue per dollar of additional services far exceeded one dollar of revenue Increases.
Apple (AAPL) Earned Call Recap
This was the second consecutive quarter in which Apple published double-digit year-over-year growth rates across all of its product categories.
CFO CFO Luca Maestri indicated that he expects double-digit revenue growth in fiscal year 2021, but warned that Apple is forced to do so due to a worldwide shortage of semiconductors.
Apple CEO Tim Cook said Apple is seeing an increase in Mac buyers for the first time. Its sales grew 70% year-over-year, and iPads’ sales increased 79%. Meanwhile, purchases paid for all of Apple’s services are 660 million, up 14 million more from Q1 FY 2021.
