Tencent Technology News April 29 news, Apple on Thursday after hours released the company's fiscal second quarter ended March 26, 2022 financial results. According to the financial report, Apple's revenue in the quarter reached $97.28 billion, an increase of 9% year-on-year; net profit reached $25.01 billion, an increase of 6% year-on-year. Apple's earnings report = still showing strong growth, dispelling investors' concerns about the impact of the deteriorating macroeconomic environment on demand for high-end smartphones and computers.
First, draw the key points
1. Revenue and net profit both exceeded Wall Street expectations
- Apple's fiscal second-quarter net revenue was $97.28 billion, up 9 percent from $89.58 billion in the year-ago quarter and surpassing Wall Street's estimate of $93.89 billion.
Apple's fiscal second-quarter operating profit was $29.98 billion, up 9 percent from $27.50 billion in the year-ago quarter.
Apple's gross profit for the fiscal second quarter was $42.56 billion, up 12% from $38.08 billion in the same period last year.
- Apple's fiscal second-quarter net profit was $25.01 billion, up 6% from $23.63 billion in the year-ago quarter.
Apple's diluted earnings per share for the fiscal second quarter were $1.52, up 9 percent from $1.40 in the year-ago quarter and outpacing Wall Street's forecast of $1.43.
2. iPhone series revenue increased by 5.5% year-on-year, exceeding expectations
- Apple's revenue from the iPhone in the fiscal second quarter was $50.57 billion, up 5.5 percent from $47.94 billion in the year-ago quarter and outpacing Wall Street's estimate of $47.88 billion.
- Apple's revenue from Macs in the fiscal second quarter was $10.44 billion, up 14.7 percent from $9.10 billion in the year-ago quarter and outpacing Wall Street's estimate of $9.25 billion.
- Apple's net revenue from the iPad in the fiscal second quarter was $7.65 billion, down 2 percent from $7.81 billion in the year-ago quarter and more than the $7.14 billion expected by Wall Street analysts.
- Net revenue from wearables, home products and accessories was $8.81 billion, up 12.4 percent from $7.84 billion in the year-ago quarter and less than Wall Street's expectation of $9.05 billion.
- Net revenue from services was $19.82 billion, up 17 percent from $16.90 billion in the year-ago quarter and outpacing Wall Street's estimate of $19.72 billion.
3. Cash
As of the end of the fiscal second quarter of fiscal 2022, Apple's total cash, cash equivalents and restricted cash held was $29.18 billion, a decrease of $6.75 billion from the beginning of the quarter.
4. Executive reviews
"This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's chief executive. "We are pleased to see the strong reaction from our customers to our new products and the progress we have made towards achieving carbon neutrality in our supply chain and products by 2030. We remain committed to being a global force for good – both what we create and what we leave behind. ”
"We are very pleased with the record business results in the second fiscal quarter as we set a record for services revenue, as well as fiscal second-quarter revenue records for iPhones, Macs and wearables, home and accessories," said Luca Maestri, Apple's chief financial officer. "Continued strong customer demand for our products has helped us achieve an all-time high in the installed base of active equipment. Our strong operating results generated more than $28 billion in operating cash flow and enabled us to return nearly $27 billion to shareholders during the quarter. ”
2. Financial summary
1. Revenue: The iPhone is still a gold sucker, but the sales of the wear business are less than expected
Apple's fiscal second-quarter net revenue was $97.28 billion, up 9 percent from $89.58 billion in the year-ago quarter and outpacing Wall Street's estimate of $93.89 billion. Apple's fiscal second quarter revenue growth was impacted by the following factors:
First, revenue from the iPhone was $50.57 billion, up 5.5 percent from $47.94 billion in the year-ago quarter and outpacing Wall Street's estimate of $47.88 billion. Apple's iPhone business grew by more than 5 percent in the quarter, further evidence that the current iPhone 13 model is selling well. Cook said the iPhone business has been successful among "converters" (people who previously owned Android phones but decided to buy an iPhone). The trend also suggests that Apple's high-end smartphone business may not be affected by deteriorating consumer confidence. Year-over-year sales of the iPhone have increased as the new iPhone launched earlier in 2021.
Second, Apple's revenue from macs in the fiscal second quarter was $10.44 billion, up 14.7 percent from $9.10 billion in the year-ago quarter and outpacing Wall Street's estimate of $9.25 billion. This suggests that Mac computers continue to grow strongly after Apple transitioned from Intel processors to its own M1 processor.
Third, net revenue from wearables, home products and accessories was $8.81 billion, up 12.4 percent from $7.84 billion in the year-ago quarter and less than Wall Street's expectation of $9.05 billion.
Fourth, net revenue from services was a record high of $19.82 billion, up 17 percent from $16.90 billion in the year-ago quarter and outpacing Wall Street's estimate of $19.72 billion. But over the past two years, Apple's services business has habitually exceeded Wall Street expectations by 3% to more than 8%, and in the second fiscal quarter, it only exceeded Wall Street's forecast by 0.51%.
Apple's revenue has also been affected by the decline in iPad revenue growth. In the second fiscal quarter, Apple's net revenue from the iPad was $7.65 billion, down 2 percent from $7.81 billion in the year-ago quarter, though still outpacing the $7.14 billion expected by Wall Street analysts. Cook said on the conference call that supply constraints had an impact on iPad sales. He asserted that demand for the iPad remains strong, especially with the new iPad Air 5 with the M1 processor.
2. Profitability
Apple's fiscal second-quarter operating profit was $29.98 billion, up 9 percent from $27.50 billion in the year-ago quarter.
Apple's gross profit for the fiscal second quarter was $42.56 billion, up 12% from $38.08 billion in the same period last year.
- Apple's fiscal second-quarter net profit was $25.01 billion, up 6% from $23.63 billion in the year-ago quarter.
Apple's diluted earnings per share for the fiscal second quarter were $1.52, up 9 percent from $1.40 in the year-ago quarter and outpacing Wall Street's forecast of $1.43.
3. Cash
As of the end of the fiscal second quarter of fiscal 2022, Apple's total cash, cash equivalents and restricted cash held was $29.18 billion, a decrease of $6.75 billion from the beginning of the quarter.
4. Greater China contributed US$18.43 billion in net revenue, up 3.5% year-on-year
Net revenue for the Americas division was $40.88 billion, compared to $34.11 billion in the year-ago quarter;
Net revenue for the European segment was $23.29 billion, compared to $22.26 billion in the year-ago quarter;
Greater China net revenue was $18.34 billion, compared to $17.72 billion in the year-ago quarter, an increase of 3.5%;
Net revenue for the Japan division was $7.72 billion, compared to $7.74 billion in the year-ago quarter.
Net revenue for the rest of Asia Pacific was $7.04 billion, compared to $7.54 billion in the year-ago quarter.
Third, other highlights
Apple's total cost of revenue for the fiscal second quarter was $54.72 billion, compared to $51.50 billion in the year-ago quarter. Among them, the cost of product revenue was $49.29 billion, compared with $46.45 billion in the same period last year, and the cost of services revenue was $5.43 billion, compared with $5.06 billion in the same period last year.
Apple's total operating expenses for the fiscal second quarter were $12.58 billion, compared to $10.58 billion in the year-ago quarter. R&D expenditure was $6.39 billion, compared to $5.26 billion in the same period last year, and sales general and administrative expenses were $6.19 billion, compared to $5.31 billion in the same period last year.
Apple also announced in its earnings report that the company's board of directors has approved a new stock repurchase program totaling $90 billion and raised its quarterly dividend by 5 percent to $0.23 per share. Apple's move maintains its position as the world's largest public company to buy back shares. According to S&P Dow Jones
According to the data provided by the Sz index, Apple will spend $88.3 billion to buy back the company's shares in 2021.
Fourth, the epidemic will reduce revenue by $8 billion by the third fiscal quarter
Apple did not provide an outlook for the second fiscal quarter of fiscal 2022 in its earnings report. Apple has not provided official revenue guidance since February 2020, citing the uncertainty of the COVID-19 pandemic. However, Cook stressed in the earnings call that the epidemic in China has not affected the performance of the second fiscal quarter, because when the epidemic broke out, Apple's second fiscal quarter was coming to an end. He also referred to donations to humanitarian assistance to Ukraine, but did not specify it explicitly.
Apple Chief Financial Officer Ma Estri said on a conference call that supply disruptions and supply constraints caused by the COVID-19 pandemic are expected to cost $4 billion to $8 billion. He said Apple expects its year-over-year revenue performance to be affected in the fiscal third quarter as the COVID-19 shutdown and existing supply constraints affect its ability to meet customer demand. More specifically, Apple expects revenue to reach $4 billion to $8 billion, much higher than the March quarter. This is mainly because the final assembly plant near Shanghai has been affected by the epidemic.
Apple shares rose $7.07, or 4.52 percent, in regular trading on the Nasdaq stock market on Thursday to $163.64. In subsequent after-hours trading, Apple's stock price fell briefly and then fell, as low as $156.25, and as of press time, Apple was down 2.16% after hours at $160.11. Over the past 52 weeks, Apple's lowest share price was $121.59 and the highest was $182.72. At Thursday's closing price, Apple's market capitalization was about $2.67 trillion. (Compiled by Tencent Technology/No Taboo)