Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

ATFX-search-icon
Client Portal
Start trading
rch

Apple (AAPL) earnings report for Q3 2022 exceeds expectation

Apple stock (#AAPL) ranked among the top-performing stocks in the first and second quarters of 2022. Investors' confidence was boosted to anticipate an accelerated performance for the next quarter following the optimistic reports presented last week's Thursday by the Chief executive officer - Tim Cook, about the remarkable progress made during the third quarter.

Cook noted despite the unanticipated supply constraints experienced by the company during its fiscal third quarter, the company managed to surmount obstacles and close the third quarter on a stronger note.

Cook reported substantial progress for the company during the third quarter, far exceeding Wall Street expectations. The only slowdown in growth was seen in the category of the iPhone maker. According to the data, the company's revenue rose to $83 billion against the previous record of $82.81 billion, marking a 2% YoY.

The revenue from iPhone sales rose to $40.67 billion against the $38.33 billion estimate recorded last year, marking a 3% YoY. The services revenue rose to $19.60, marking a 12% increase compared to the previous year.

However, some decline was recorded in the following areas: Mac's revenue fell to $7.38 billion against the previous record of $8.7 billion, marking a 10% decrease YoY. The CEO believes low sales volume was caused by the constraints on supply and the strong dollar seen during the third quarter.

Sales of the iPad fell to $7.22B marking a 2% decline from the previous sales recorded last year. 

Other products such as headphones, AirPods, Apple Watches, and HomePod speakers fell by an estimated 8% YoY.

Nevertheless, the gross margin of sales made was 43.26% marking a 1.2% increase from the previous record of 42.61% YoY.

The Apple services business was the fastest growing segment for Apple during the third quarter. This includes the monthly subscriptions, search licensing fees from Google, revenue from the iPhone App Store and payment fees, warranties.

Apple services increased by more than 12% during the third quarter, although that could be considered a 17% decline from the growth it recorded in the second quarter; however, the progress remains laudable.

Cook said Apple has 860 million current paid subscriptions, including anyone who subscribes to an app sold on the Apple App Store and products such as Apple Music and iCloud.

Cook remarked that they expect the company to grow further in the next quarter of the year. In his words: 

 "In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness,"  

While making its forecast for the fourth quarter, the company's Chief Financial Officer Luca Maestri noted that its revenue is expected to "accelerate" year-over-year. According to him: 

 "Apple (AAPL) expects its gross profit margins for the quarter to be between 41.5% and 42.5%." 

He further assured investors that the Apple stock company remains strong and determined to move to greater heights in the present quarter.

Maestri reported that Apple had declared a quarterly dividend of $0.23 a share that will be payable to all shareholders of record as of 8th August. This will be paid out three days after on 11th August precisely.

Above all, speaking on the rising inflation and fears of a possible recession, the CEO reported that the company is affected by the inflation menace but will continue to invest. In his words: 

"We do see inflation in our cost structure...We see it in logistics, wages, and certain silicon components, and we're still hiring, but we're doing it deliberately."  

Apple (#AAPL) stock closed the week Bullish with prices at $162.49 per stock. Investors are eager for more gains from this stock in the new month.

Last Updated: 01/08/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Recent news
Trading USDCAD on Dual Employment Figures

This article looks at the USDCAD exchange rate, which has an employment release ahead of F...

Recent news
USDJPY Continues Lower with Kuroda Speech

USDJPY has collapsed from our previous sell ideas and could continue lower. The day ahead ...

Recent news
Is EURUSD Ready for a Reversal?

The EURUSD exchange rate has been finding resistance at the 1.04 level and could be ready ...

Recent news
Chinese Stocks Clear Important Resistance

The China 50 index was higher after clearing a critical resistance level and will seek fur...

Recent news
Powell’s Speech & The Beige Book Effects On Gold Prices

USDX has found strong support at 105.29, which should be low in place in the last week. Me...