Apple earnings are out, here are the numbers
Apple posted perhaps the strongest earnings report from any of the major tech companies that have reported thus far. Second quarter earnings beat estimates, coming in at $1.52 versus an expected EPS of $1.42. Sales grew almost 9% year over year to top $97 billion versus the $94bn expected by analysts.
Thanks to the large beat, 2Q22 became Apple’s largest non-holiday quarter in the company’s history. Despite surging COVID cases in China, lockdowns across the country, and supply chain issues, the company produced stellar returns. iPhone sales topped $50 billion, while services revenue almost hit $20bn for the quarter.
Meanwhile, the company increased its new share buyback program to $90 billion and increased its quarterly dividend by 5% to 23¢/share from 22¢. Despite the strong 2Q report, the company did not provide guidance for third quarter numbers. However, the situation in China did have a material impact on revenue growth. Moreover, a strengthening U.S. dollar is having a negative impact on companies such as Apple that derive a significant portion of their business from international markets.
The CFO of the company did indicate that supply constraints would have a $4-$8bn impact on sales in Q3. Margins at Apple remain healthy, and the company ended the quarter with a net-cash balance of $73 billion. Apple’s new products also continued to provide strong revenue growth, with wearables, streaming and advertising all setting March quarter records. Shares were trading down 3% in the aftermarket.