Apple Q3 Results 2022: Revenue and Profit beat estimates, Dividend announced

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Apple q3 earnings 2022

Apple on Thursday reported its third-quarter earnings, and the numbers were higher than analysts' expectations despite the slowing growth.  Apple stock was trading 2% higher on Friday. The stock has fallen 13.5% YTD.

Key highlights from Apple's June quarter results:

  • Revenue: $83 billion, up 2% YoY
  • Profit: EPS of $1.20 against an estimate of $1.16
  • Dividend: $0.23 per share
  • Guidance: No guidance for next quarter

Let us look at the quarterly numbers in detail:

Apple Q3 Revenue beats estimates

 Apple reported revenue of $83 billion compared to $81.4 billion in the year-ago period, an increase of 2%. The revenue estimated by analysts was $82.81 billion. 

The revenue from all the segments saw growth except for the iPad and Mac. iPhone revenue increased by 3% year on year to $40.67 billion (against the $38.33 billion estimate). The revenue from services increased by 12% year on year to $19.60 billion (against the $19.70 billion estimate). Revenue from Mac declined 10% to $7.38 billion (against the $8.70 billion estimate). The iPad revenue was down 2% to $7.22 billion.

Apple Q3 Results 2022: Net profit

 The net profit reported by the company was $19.4 billion or $1.20 per share against an estimate of $1.16. It is $5.6 billion less than the net profit for the quarter ending March 26 and 8% lower year-on-year.

Apple quarterly results: Gross margin

 The gross margin stood at 43.26% compared to analysts' estimate of 41.7%. It is higher than the 42% to 43% range the company suggested earlier this year.  

Apple Q3 2022 Dividend

 The board of directors has declared a cash dividend of $0.23 per share. The dividend will be on August 11, 2022, to shareholders of record as of the close of business on August 8, 2022.

Apple Guidance for Q4 

Apple did not provide formal guidance for the next quarter. Analysts expected the company to give Q4 guidance of $1.31 in earnings per share (EPS) and nearly $90 billion in sales. 

Apple Q3 Results: Analysts' view

Based on 29 analysts offering 12-month price targets for Apple, the average price target is $179.53. The high forecast was $210 and the low forecast of $130. Currently, Apple share is trading at $157.35.

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