Apple Inc (NASDAQ:AAPL) beats analysts’ expectations

Apple Inc (NASDAQ:AAPL) stock rose 3.22% (As on June 29, 11:14:55 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22 and forecasts faster sales growth, strong iPhone demand despite glum economy. The parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending. Phone sales in the fiscal third quarter rose 3% to $40.7 billion, when Wall Street had braced for a 3% decline. By contrast, the overall global smartphone market dropped 9% during the just-ended quarter, according to Canalys data. Parts shortages will continue to hamper Mac and iPad sales, Maestri said, though the impact has been easing. They cost Apple under $4 billion in sales in the quarter ended June 25, less than it had forecast. Maestri said the company expects the hit to diminish further in the current quarter.

APPLE

AAPL in the third quarter of FY 22 has reported the adjusted earnings per share of $1.20, beating the analysts’ estimates for the adjusted earnings per share of $1.16. The company had reported the adjusted revenue growth of 2 percent to $83 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $82.8 billion, according to Refinitiv data. Moreover, While sales of iPhones and iPads topped expectations, revenue from services, Mac computers and accessories missed Wall Street targets and sales in the crucial China market fell 1% as consumers being on lockdown there limited sales. Apple also is confronting slow overall economic growth in China, where its fiscal third-quarter sales were $14.6 billion. Growth in the company’s services business, which has provided a boost to sales and profits in recent years, was 12%, below the previous year’s 33% rate and resulting in $19.6 billion in revenue, below estimates of $19.7 billion. Apple said it now has 860 million paying subscribers to its services, up from the previous quarter’s 825 million.

Further, the sales of iPads and Macs were $7.2 billion and $7.4 billion, compared with estimates of $6.9 billion and $8.7 billion. Mac sales represented a 10% contraction, after record sales since 2020, first from a work-from-home boost and then from Apple’s new proprietary processor chips.

Additionally, during the quarter, the company generated nearly $23 billion in operating cash flow, and returned over $28 billion to the shareholders. The company has declared a cash dividend of $0.23 per share of the Company’s common stock.

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