Apple (NASDAQ:AAPL) Releases Earnings Results, Beats Estimates By $0.13 EPS

Apple (NASDAQ:AAPL) announced its quarterly earnings data on Thursday. The iPhone maker reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.89 by $0.13, FiscalAI reports. Apple had a return on equity of 146.69% and a net margin of 27.15%.The firm had revenue of $109.42 billion during the quarter, compared to analysts’ expectations of $109.04 billion. During the same period last year, the business posted $1.57 earnings per share. The company’s revenue for the quarter was up 16.4% compared to the same quarter last year.

Here are the key takeaways from Apple’s conference call:

• Revenue reached a June-quarter record of $109.4 billion, up 16% year over year, with double-digit growth across all geographic segments. iPhone revenue rose 22% to $54.3 billion, Mac revenue increased 29% to a record $10.4 billion, and Services grew 12% to $30.7 billion.
• Apple reported strong customer adoption, including an all-time-high installed base of more than 2.5 billion active devices and over 1.5 billion paid subscriptions. The company also said it gained global share in both iPhone and Mac, while emerging markets delivered particularly strong growth.
• Apple expects September-quarter revenue growth to slow to 9%–11%, citing a roughly 2.5-percentage-point foreign-exchange headwind and significantly worsening supply constraints affecting iPhone, Mac, and iPad. The constraints are primarily tied to limited availability of advanced semiconductor manufacturing nodes amid demand that exceeded forecasts.
• Rising memory costs are putting pressure on profitability, with Apple expecting to pay even higher memory prices in the September quarter and beyond. Management said memory costs were the primary driver of the sequential decline in adjusted gross margin, while recent price increases were implemented reluctantly to offset the unprecedented cost inflation.
• Management expressed strong enthusiasm for Apple Intelligence and the upcoming Siri AI, emphasizing private, personalized, and on-device capabilities that could support future product demand and new iCloud+ upgrades. Apple also announced a U.S. manufacturing agreement with Broadcom expected to exceed $30 billion and confirmed John Ternus will succeed Tim Cook as CEO after this call.

Apple Stock Down 1.4%

Shares of AAPL opened at $333.43 on Friday. The firm has a market cap of $4.90 trillion, a P/E ratio of 40.32, a PEG ratio of 2.92 and a beta of 1.10. Apple has a 12 month low of $201.50 and a 12 month high of $344.57. The stock’s 50 day moving average is $309.51 and its two-hundred day moving average is $281.25. The company has a current ratio of 1.07, a quick ratio of 1.02 and a debt-to-equity ratio of 0.70.

Apple Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Monday, August 10th will be given a dividend of $0.27 per share. The ex-dividend date is Monday, August 10th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.3%. Apple’s dividend payout ratio (DPR) is 13.06%.

Analysts Set New Price Targets

Several equities analysts recently weighed in on AAPL shares. Wells Fargo & Company reiterated an “overweight” rating on shares of Apple in a report on Friday. KeyCorp reaffirmed an “underweight” rating and issued a $250.00 price objective on shares of Apple in a report on Tuesday. DA Davidson reiterated a “neutral” rating and issued a $270.00 price objective on shares of Apple in a research note on Friday, May 1st. Morgan Stanley reduced their target price on shares of Apple from $364.00 to $360.00 and set an “overweight” rating for the company in a report on Friday. Finally, Jefferies Financial Group restated a “hold” rating on shares of Apple in a research report on Tuesday, June 9th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Apple presently has an average rating of “Moderate Buy” and an average target price of $328.60.

More Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported record quarterly revenue of $109.4 billion, up 16.4% year over year, while diluted EPS of $2.02 exceeded Wall Street’s $1.89 estimate. iPhone revenue rose 22% to $54.3 billion and Mac revenue increased 29% to $10.4 billion. Apple reports third quarter results
• Positive Sentiment: Analysts at Baird, Goldman Sachs and Citi reiterated Buy ratings, citing premium hardware pricing, stabilizing high-margin Services growth, and longer-term opportunities from Apple’s artificial-intelligence strategy. Price targets ranged from $330 to $365. Goldman Sachs reiterates Buy rating
• Positive Sentiment: Apple’s new leasing program, supported by Klarna, could encourage more frequent upgrades and increase sales of higher-priced devices. The company also highlighted an all-time-high installed base and potential AI-related growth, including a possible paid tier for advanced Siri features. Apple leasing program

Insider Buying and Selling

In related news, insider Ben Borders sold 116 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $295.14, for a total transaction of $34,236.24. Following the completion of the transaction, the insider owned 38,713 shares in the company, valued at $11,425,754.82. This represents a 0.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.06% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank purchased a new stake in shares of Apple in the 4th quarter valued at $52,266,468,000. Nuveen LLC purchased a new stake in Apple during the first quarter worth about $17,472,482,000. Cardano Risk Management B.V. increased its stake in Apple by 890.7% during the fourth quarter. Cardano Risk Management B.V. now owns 41,984,810 shares of the iPhone maker’s stock worth $11,413,990,000 after purchasing an additional 37,746,784 shares during the period. Laurel Wealth Advisors LLC lifted its position in shares of Apple by 20,464.8% during the second quarter. Laurel Wealth Advisors LLC now owns 27,069,029 shares of the iPhone maker’s stock worth $5,553,753,000 after purchasing an additional 26,937,401 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in shares of Apple by 13.3% in the fourth quarter. Northern Trust Corp now owns 171,385,531 shares of the iPhone maker’s stock valued at $42,918,365,000 after purchasing an additional 20,079,472 shares during the period. 67.73% of the stock is currently owned by institutional investors and hedge funds.

About Apple

Apple Inc (NASDAQ: AAPL) is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple’s principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.