Apple Q1 Result: Highest ever Quarterly Revenues

Revenue beats estimates - Apple Inc reported revenue of $123.9 billion compared to $111.4 billion in the year-ago period, an increase of 11%. The revenue estimated by analysts was $118.66 billion. 

The revenue from all the segments saw growth except for the iPad. iPhone revenue increased by 9% YoY to $71.63 billion. The revenue from services increased by 24% YoY to $19.52 billion. Revenue from Mac increased by 25% to $10.85 billion. The iPad revenue was down 14% to $7.25 billion.

Net profit increase - The net profit reported by the company was $34.6 billion or $2.10 per diluted share. The net profit in the year-ago period was $28.8 billion or $1.68 per diluted share. It is higher than a street estimate of $1.89.

Gross margin - The gross margin increased to 43.8% compared to analysts' estimate of 41.7%. In the year-ago period, the gross margin was 39.8%. Services is Apple’s most profitable business unit and its rise contributed to Apple’s higher-than-expected gross margin.

Dividend - Apple also declared a quarterly dividend payment of $0.22 per share, payable on February 10 to shareholders of record as of February 7.

Target Price - The 38 analysts offering 12-month price forecasts for Apple Inc have a median target of $182, with a high estimate of $210 and a low estimate of $105.

Apple Quarterly Results Review 

Apple reported its largest single quarter in terms of revenue ever, with sales growing over 11%. Apple reported exceptional numbers despite supply challenges and the effects of the pandemic. Apple's iPhone, Mac, Wearables, and Services segments also recorded all-time highs for revenue. As has been the case for well over a year now, Apple is once again not issuing guidance for the current quarter ending in March.

Apple's share price closed 0.29% lower at $159.22 on Thursday.