Apple (NASDAQ:AAPL) Posts Quarterly Earnings Results, Beats Expectations By $0.13 EPS

Apple (NASDAQ:AAPL) issued its quarterly earnings data on Thursday. The iPhone maker reported $2.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.89 by $0.13, FiscalAI reports. The business had revenue of $109.42 billion for the quarter, compared to the consensus estimate of $109.04 billion. Apple had a return on equity of 142.29% and a net margin of 27.62%.The business’s revenue was up 16.4% on a year-over-year basis. During the same period in the prior year, the business earned $1.57 earnings per share.

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 Performance

Shares of AAPL opened at $308.91 on Friday. The company has a quick ratio of 1.02, a current ratio of 1.07 and a debt-to-equity ratio of 0.70. The business’s 50 day moving average is $309.51 and its two-hundred day moving average is $281.45. The firm has a market cap of $4.54 trillion, a price-to-earnings ratio of 35.43, a PEG ratio of 2.88 and a beta of 1.10. Apple has a 52-week low of $201.50 and a 52-week high of $344.57.

Apple Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.27 per share. The ex-dividend date is Monday, August 10th. This represents a $1.08 annualized dividend and a yield of 0.3%. Apple’s payout ratio is currently 12.39%.

Apple News Summary

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported record June-quarter revenue of $109.4 billion, up 16.4% year over year, and diluted EPS of $2.02, exceeding Wall Street expectations. iPhone revenue rose 22% to $54.3 billion, while Mac revenue increased 29% to $10.4 billion. Apple reports third quarter results
• Positive Sentiment: Apple’s large installed base, strong hardware demand and potential consumer-AI opportunities remain long-term supports. Some analysts remain bullish: TD Cowen raised its price target to $400, while other firms maintained Buy or Overweight ratings despite trimming estimates. Analyst raises Apple price target
• Positive Sentiment: The company declared a quarterly dividend of $0.27 per share, payable August 13 to shareholders of record August 10. Apple also continues to emphasize an AI strategy that requires less capital spending than the infrastructure-heavy approach used by some peers. Apple Q3 financial results

Insider Activity

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

Institutional Trading of Apple

Institutional investors and hedge funds have recently modified their holdings of the business. ROSS JOHNSON & Associates LLC increased its position in Apple by 1,800.0% in the first quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker’s stock worth $42,000 after buying an additional 180 shares during the period. LSV Asset Management bought a new stake in Apple in the fourth quarter worth about $65,000. Timmons Wealth Management LLC acquired a new stake in Apple during the fourth quarter valued at approximately $69,000. 49 Wealth Management LLC lifted its position in shares of Apple by 15.7% during the 3rd quarter. 49 Wealth Management LLC now owns 298,920 shares of the iPhone maker’s stock valued at $76,000 after acquiring an additional 40,543 shares during the last quarter. Finally, Inspire Investing LLC acquired a new position in shares of Apple in the 4th quarter valued at $76,000. 67.73% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Raymond James Financial restated a “market perform” rating on shares of Apple in a report on Friday. Maxim Group reaffirmed a “buy” rating and set a $350.00 price target (up from $310.00) on shares of Apple in a research note on Tuesday, June 9th. Rosenblatt Securities lifted their price target on shares of Apple from $276.00 to $300.00 and gave the company a “neutral” rating in a report on Friday. Wells Fargo & Company reissued an “overweight” rating and set a $350.00 price objective (up from $310.00) on shares of Apple in a research note on Friday. Finally, UBS Group restated a “neutral” rating on shares of Apple in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Apple presently has an average rating of “Moderate Buy” and a consensus price target of $331.60.

Apple Company Profile

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.