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Apple Surges After Strong Earnings, Stellar Guidance Offset Disappointing iPhone Sales, Service Revenues
First, three quarters ago, Apple shocked investors when it said it would no longer disclose the number of iPhones it was selling - a clear signal that selling had slowed dramatically. Shocked investors sold off the stocks… then BTFD with gusto sending AAPL sharply higher. A few months later, on January 3 2019, Apple once again shocked the market when it slashed its revenue guidance by 8% for only the first time since this century (naturally, it blamed China). As AAPL stock tumbled, it reveberated across all capital markets, and even prompted a flash crash cascade in most yen and pound pairs. However, just like a quarter earlier, Apple's "shock" was quickly overcome, and the after hours plunge actually marked the max pain for longs, and as the chart below shows, AAPL has soared 46%. And to think all it had to do was slash revenue guidance..
Then, last quarter, as largely expected, Apple reported that iPhone sales had indeed slumped, but the reason why the market kept bidding up the stocks, was the company's effervescent outlook, which while declining on a year over year basis, was well above sellside consensus, dispelling fears of a growth slump and boosting hopes that Apple is successfully transitioning to a services company (the new $75 billion stock buyback repurchase authorization did not hurt).
So with US-China trade talks resuming today, Trump's twitter rant notwithstanding, everyone's attention was glued to the Apple earnings report at 430pm ET to see if all the optimism over the past 3 quarters would be justified. The answer appears to be yes, because moments ago, Apple reported that in fiscal Q3, it beat both revenue and EPS earnings:
Q3 EPS: $2.18, Exp. $2.10
Q3 Revenue: $53.8BN, Exp. $53.35BN
Q3 Gross Margin $20.23BN
Q3 Product revenue: $42.35 billion
Apple also announced that it had repurchased a whopping $17BN in stock in the quarter, and spent $3.6BN on dividends.
While Apple beating on earnings was great news (and the extravagant buyback certainly did not hurt), less impressive was Apple's iPhone revenue, which came in at $25.986BN, below the $26.45BN expected, and well below the $29.5 billion from a year ago, as well as the slight miss in services revenue which came in at $11.46BN, below the $11.88BN consensus.
Another disappointing data point: China revenue came in at $9.16BN, down 4.1% Y/Y; China was the only geographic region that posted a Y/Y revenue decline in the quarter.
The full breakdown by geography is as follows
Cap#3
Something worth pointing out: iPhone sales Q3 represented about 48% of revenues, the first time that the product has made up less than half of sales in several years.
Yet despite the disappointing iPhone sales, the reason why the stock is some 3% higher after hours was largely due to the company's revenue and gross margin outlook, which came in well above the Sellside estimate:
Q4 revenue between $61 and $64 billion, exp. $61.04BN
Q4 gross margin between 37.5% and 38.5%, exp. 37.5%
Commenting on the earnings, Apple CFO Luca Maestri said that "Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion. We returned over $21 billion to shareholders during the quarter, including $17 billion through open market repurchases of almost 88 million Apple shares, and $3.6 billion in dividends and equivalents.”
Looking at the company's increasingly important service revenue number, Apple reported $11.46BN in service revenue, up from $10.2BN a year ago, but below the $11.88BN expected by analysts, and virtually unchanged from the prior quarter.
So the bottom line: a modest profit beat, coupled with weaker than expected iPhone and Services revenue, offset by very strong guidance, which is enough to push AAPL stock 4.3% higher to $218, just above the price shares peaked at ($215.31) the day after Apple's last quarterly report.
See Cap#4 for Net cash excluding debt…
https://www.zerohedge.com/news/2019-07-30/apple-surges-after-strong-earnings-stellar-guidance-offset-iphone-sales-service
this is a trend with apple for many years, mask the overall results with a great forward looking guidance to mask the actual results.' They then take the guidance down the closer the earnings release comes. They did this on January 2nd of this year when the cut the earnings forecast is gave on the Q3-2018 guidance. They have done this for many years. Put out pie-in-the-sky numbers and let that work on the equity. The closer it gets to having to achieve this they then walk it back down.
>when someone with actual insurance shows up
>Thanks open border ass holes!
This is exactly why I no longer have it. Tired of being healthy and having to pay for these people who are not responsible and go to the fucking emergency room for a toothache.
Last premium was at $810 per month. and then had the 'pleasure' of receiving a big fat bill after paying that every month.
it's just as bad in SD cty even in the "expensive" area's. Can't even imagine if I had to go to 'nasty' city or chula vista. they should have moved the border up 15 miles years ago.
If I have a problem I will do the same thing. They have to treat you so two can play that game.
CoStar Grp Pres/CEO and CFO sold $19.58m in shares-July 26
CoStar Group, Inc. (CoStar) is a provider of information, analytics and online marketplaces to the commercial real estate and related business community through its database of commercial real estate information covering the United States, the United Kingdom, and parts of Canada, Spain, Germany and France. The Company provides online marketplaces for commercial real estate, apartment rentals, lands for sale and businesses for sale. It manages its business geographically in two segments: North America, which includes the United States and Canada, and International, which includes the United Kingdom, Spain, Germany and France. Its suite of information, analytics and online marketplaces is branded and marketed to its customers. Its services are primarily derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing and using its information. It has five brands: CoStar, LoopNet, Apartments.com, BizBuySell and LandsofAmerica.
Number of employees : 3 711 people.
https://www.marketscreener.com/COSTAR-GROUP-INC-8923/company/
This is where the many REIT's (Real Estate Investment Trusts) get information and valuations from. Ever wonder why commercial reals estate never dropped much after 2008? Places like this with mark-to-model accounting of it's "research".
https://www.finviz.com/quote.ashx?t=CSGP&b=2
GFY
didn't work last time nigga. should have kept it zipped. but ya didn't