Apple posts disappointing first quarter results
It was Apple's biggest quarterly revenue drop since 2016
B Riley Wealth Management chief market strategist Art Hogan analyzes stock market earnings on 'Making Money.'
Apple on Thursday released its first-quarter earnings for fiscal 2023, with revenue, earnings per share and two of its segments coming in below estimates.
The company reported generating $117.2 billion in first-quarter revenue. That figure was below the $121.1 billion estimated by Refinitiv analysts.
In comparison, its first-quarter revenue for fiscal 2022 was $123.9 billion.
APPLE DELAYS DEVELOPMENT OF AR GLASSES INDEFINITELY: REPORT
Meanwhile, the iPhone maker said its net income narrowed 13% from the $34.6 billion reported in the same period the prior year, posting $30 billion. It reported a diluted earnings-per-share of $1.88, meaning it was lower than analysts’ $1.94 estimate.
In this Saturday, March 14, 2020, file photo, an Apple logo adorns the facade of the downtown Brooklyn Apple store in New York. Apple plans to roll out a "lockdown" option for iPhones, iPads and Mac computers intended to protect against spyware unlea … (AP Photo/Kathy Willens, File / AP Newsroom)
Two of its operating segments, iPad and services, topped analyst expectations.
The company said it posted roughly $9.4 billion in quarterly iPad net sales, compared to $7.25 billion in the same period the year before. Estimates had put iPad net sales at $7.76 billion for the first-quarter of fiscal 2023.
Services had $20.77 billion in net sales, above estimates of $20.67 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 173.50 | +4.20 | +2.48% |
"We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis," Apple CFO Luca Maestri said in a statement.
APPLE PRODUCTION IN CHINA BEGINS TO CATCH UP DESPITE COVID-19 WOES
Apple's other segments – iPhone, Mac, and wearables, home and accessories – were below estimates from Refinitiv analysts.
An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo (REUTERS/Mike Segar/File Photo / Reuters Photos)
First-quarter net sales for the iPhone segment fell 8% year-over-year to about $65.78 billion, while its Mac net sales came in at roughly $7.74 billion. Estimates for those segments were $68.29 billion and $9.63 billion, respectively.
U.S. prosecutors have charged a former Apple Inc employee with defrauding the iPhone maker out of more than $10 million in a series of schemes. REUTERS/Brendan McDermid/File Photo (REUTERS/Brendan McDermid/File Photo / Reuters Photos)
Wearables, home and accessories saw $13.48 billion in net sales for the first quarter, compared to the $15.22 billion analysts had projected.
APPLE CEO'S PAY DEPENDS ON STOCK PERFORMANCE IN 2023
CEO Tim Cook said in a statement that Apple was "excited to report that we now have more than 2 billion active devices as part of our growing installed base," something he called a "major milestone."