Apple Earnings: What Happened with AAPL

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AAPL crushed net and gross expectations

Key Takeaways

  • Apple's services gross surpassed expert estimates.
  • Profit margins connected the company's services gross are overmuch larger than connected gross generated done merchandise sales.
  • iPhone income roseate 49.8% compared to the year-ago quarter.
Apple Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
EPS Beat $1.30 $1.01
Revenue Beat $81.4B $73.5B
Services Revenue Beat $17.5B $16.3B

Source: Predictions based connected analysts' statement from Visible Alpha

Apple (AAPL) Financial Results: Analysis

Apple Inc. (AAPL) reported Q3 FY 2021 earnings that crushed analysts' expectations. Earnings per share (EPS) came successful good supra expectations, doubling from the year-ago quarter. Revenue besides exceeded expert forecasts by a wide margin, rising 36.4% twelvemonth implicit twelvemonth (YOY) to a grounds precocious for the June quarter. Apple's services gross bushed analysts' estimates. The company's shares were up somewhat successful after-hours trading. Over the past year, Apple's shares person provided a total return of 55.9%, good supra the S&P 500's full instrumentality of 35.9%.

Note that Apple's 2020 fiscal twelvemonth ended successful Sept. 26, 2020. Its existent net study is frankincense for its fiscal 3rd quarter, which coincides with the 2nd 4th of the calendar year.

AAPL Services Revenue

Apple's services gross roseate 32.9% YOY, marking the fastest gait of maturation since Q3 FY 2018. The company's services see the its integer contented stores and streaming services, specified arsenic its assorted App Store platforms, Apple Music, Apple Arcade, Apple News+, and Apple TV+. Apple besides generates services gross from AppleCare, advertizing services, unreality services, and different services, including Apple Card and Apple Pay.

Profit margins on services income are dramatically larger than connected Apple's hardware profits. That means that each dollar of added work income disproportionately boosts Apple's profits compared to hardware sales.

Hardware income inactive marque up the bulk of Apple's revenue, however. Apple's iPhone income alone, which roseate 49.8% YOY, accounted for 48.6% of full revenue.

Apple did not supply immoderate aboriginal guidance successful its net release. It has not provided immoderate guidance since the opening of the COVID-19 pandemic. Apple's adjacent net study (for Q4 FY 2021) is estimated to beryllium released connected Oct. 27, 2021.

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  1. Apple Inc. "Apple Reports Third Quarter Results." Accessed July 27, 2021.

  2. Apple Inc. "Q3 FY 2021 Earnings Report," Page 1. Accessed July 27, 2021.

  3. Visible Alpha. "Financial Data." Accessed July 21, 2021.

  4. TradingView. "Price Chart: AAPL and S&P 500." Accessed July 27, 2021.

  5. Apple Inc. "Form 10-K for the fiscal twelvemonth ended September 26, 2020," Pages 1 & 2. Accessed July 27, 2021.

  6. CNBC. "Apple demolishes net expectations with iPhone income surging astir 50%." Accessed July 27, 2021.

  7. Yahoo! Finance. "Earnings Calendar: AAPL." Accessed July 27, 2021.

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