Apple Stock Drops Sales Fall Fourth Straight Quarter
Apple beats expectations for Q4 earnings with $1.46 per share on sales of $89.5bn, but sales fall for fourth consecutive quarter.
Apple, the well-known consumer electronics company, has surpassed expectations for its fiscal fourth quarter, but unfortunately, sales have declined for the fourth consecutive quarter. This has resulted in a drop in Apple's stock during extended trading.
For the quarter ending on September 30, Apple reported earnings of $1.46 per share on sales of $89.5 billion. Analysts had predicted earnings of $1.39 per share on sales of $89.3 billion. While Apple's earnings increased by 13% compared to the previous year, sales declined by 1%.
This marks the fourth consecutive quarter of declining sales for Apple.
In the September quarter, Apple's hardware sales saw a 5% decrease, amounting to $67.2 billion. However, their services revenue experienced a 16% increase, reaching $22.3 billion.
Following these results, Apple's stock dropped by 0.6% to $176.49 in after-hours trading. However, during the regular session on Thursday, the stock had climbed by 2.1% to close at $177.57.
Apple's Chief Financial Officer, Luca Maestri, expressed his thoughts on the company's performance, stating, "During the September quarter, our business performance drove double-digit EPS growth and we returned nearly $25 billion to our shareholders, while continuing to invest in our long-term growth plans."
The revenue generated by Apple's iPhone increased by 3% to $43.8 billion, accounting for 49% of the company's total sales in the fiscal fourth quarter. However, Mac computer sales declined by 34% to $7.6 billion, and iPad tablet sales slid by 10% to $6.4 billion. Revenue from Apple's wearables, home, and accessories unit also experienced a 3% decline, amounting to $9.3 billion.
In an effort to revitalize sales, Apple recently introduced new Mac computers featuring their latest processor, the M3. These products include refreshed iMac desktop computers and MacBook Pro notebooks.
According to IBD Stock Checkup, Apple's stock has an IBD Composite Rating of 83 out of 99. The Composite Rating combines five separate proprietary ratings into one comprehensive rating. The most successful growth stocks typically have a Composite Rating of 90 or higher.
For more stories on consumer technology, software, and semiconductor stocks, you can follow Patrick Seitz on X, formerly known as Twitter, at @IBD_PSeitz.
In conclusion, while Apple has exceeded earnings expectations, the continuous decline in sales is a cause for concern. The company's efforts to introduce new products and invest in long-term growth plans will be crucial in reversing this trend and regaining momentum in the market.