Apple reported fiscal third-quarter earnings on Thursday that beat Wall Street expectations, with overall revenue rising 5%. iPhone, iPad and Services revenue all beat analyst expectations.
Apple's most important business remains the iPhone, which accounted for about 46% of the company's total sales during the quarter. Apple expects similar overall revenue growth in the current quarter, company finance chief Luca Maestri said on a call with analysts. Apple also expects Services to grow at about the same rate as the previous three quarters, which was about 14%. The company sees operating expenditures between $14.2 billion and $14.4 billion in the current quarter, Maestri added, with gross margin of between 45.5% and 46.5%. Apple shares were flat in extended trading. Here's how $AAPL Apple did in Q3 FY24 (June quarter): 💳 Services +14% Y/Y to $24.2B. 📱 Products +2% Y/Y to $61.6B. • Revenue +5% Y/Y to $85.8B ($1.4B beat). • Operating margin 30% (+1pp Y/Y). • EPS $1.40 ($0.06 beat). Source: App Economy Insights, CNBC
Ferrari (RACE) boosted its full-year guidance when delivering second-quarter results that topped revenue expectations on Thursday.
The Italian automaker now projects 2024 net revenue of more than 6.55 billion euros ($7.07 billion), up from more than EUR6.4 billion, and adjusted earnings per share (EPS) of at least EUR7.90, up from at least EUR7.50. “We are delighted to announce excellent financial results in the second quarter of 2024, which demonstrate again a strong execution and continued growth." – Benedetto Vigna, CEO Ferrari $RACE Q2 2024 in a nutshell: Shipments +3% *EMEA +1% *Americas +13% *Greater China -18% *APAC +4% Revenue +16.2% EBIT +17% *marg 29.9 (29.7) EPS +25% Source: Quartr
$AMD Q2 2024: "Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year" - Lisa Su, CEO
Details by Quartr: Revenue +9% *Data Center +115% *Client +49% *Gaming -59% *Embedded -41% Gross Profit +17% *marg. 49% (46%) EBIT +1445% *marg. 5% (0) EPS +700%
Microsoft shares fell 7% in extended trading on Tuesday as investors looked past better-than-expected earnings and revenue and focused instead on disappointing cloud results.
Here’s how the company did, compared with the LSEG consensus: -> Earnings per share: $2.95 vs. $2.93 expected -> Revenue: $64.73 billion vs. $64.39 billion expected Microsoft’s revenue increased 15% year over year in the fiscal fourth quarter, which ended on June 30, according to a statement. Net income, at $22.04 billion, was up from $20.08 billion, or $2.69 per share, in the year-ago quarter. The company’s top segment, Intelligent Cloud, generated $28.52 billion in revenue. It includes the Azure public cloud, Windows Server, Nuance and GitHub. The total was up about 19% and below the $28.68 billion consensus among analysts surveyed by StreetAccount. GitHub’s revenue is now at an annual run rate exceeding $2 billion, Microsoft CEO Satya Nadella said on a conference call with analysts. Revenue from Azure and other cloud services grew 29% during the quarter. Analysts polled by CNBC and StreetAccount had expected 31% growth. Microsoft’s Azure number hadn’t fallen short of consensus since 2022. Microsoft doesn’t disclose revenue from the category in dollars. In a nutshell: $MSFT Microsoft Q4 FY24 (ending in June): ☁️ Azure +30% Y/Y fx neutral (vs. 31% in Q3). • Revenue +15% Y/Y to $64.7B ($0.3B beat). • Gross margin 70% (-1pp Y/Y) • Operating margin 43% (flat Y/Y). • EPS $2.95 ($0.02 beat). Source: CNBC, App Economy Insights
A critical week ahead for the Nasdaq 100 QQQ which is sitting at critical trendline support at the time of FOMC meeting + $AAPL $MSFT $AMZN $META earnings...
Source; Trend Spider
Alphabet slipped 1% after-hours in spite of a beat on both top and bottom lines in the second quarter.
Alphabet earned $1.89 per share on $84.74 billion in revenue. Consensus estimates had called for earnings of $1.84 per share on $84.19 billion in revenue. However, revenue at its Youtube advertising segment missed forecasts. $GOOG Alphabet Q2 FY24 by App Economy Insights: • Revenue +14% Y/Y to $84.7B ($0.5B beat). • Operating margin 32% (+3pp Y/Y). • EPS $1.89 ($0.04 beat). ☁️ Google Cloud: • Revenue +29% Y/Y to $10.3B. • Operating margin 11% (+6pp Y/Y). ▶️ YouTube ads +13% to $8.7B.
Tech’s outperformance has been highly correlated to its earnings vs. S&P 500 since the Tech Bubble
Source: BofA, Mike Z.
Equal weight S&P 500 (ETF $RSP) is considerably cheaper than the market cap weighted ETF, just as we may see earnings growth broaden out to a wider swath of companies.
Does that spell opportunity? Source: Markets & Mayhem, GS
