“Apple reports earnings on July 22, after market close. As usual, the event will be closely watched,” Daniel Sparks writes for The Motley Fool. “While there will be a number of hot metrics to watch, one will tell the story of Apple stock better than any other: earnings growth. With arguably Apple’s greatest challenge being its size, investors want to know whether or not the tech giant can still grow its business meaningfully.”
“Apple investors have become increasingly confident that the company can continue to grow its business. While Apple’s year-over-year revenue growth rates have improved, its earnings-per-share growth has improved even more. The improving earnings story has reinvigorated market interest in the stock. Shares have soared 60% in the past year,” Sparks writes. “Consider Apple’s most recent quarter. Apple’s EPS grew by 15%, year over year. The growth stemmed from slight revenue growth, an aggressive share repurchase program, and favorable gross profit margin comps. This rate was the highest the company has reported in the last six quarters.”
“Will the growth continue in Q3?” Sparks asks. “That’s the question investors will be looking to find out.”
Read more in the full article here.
The Lunar New Year had a lot to do with record profits. Tim Cook is one of the few business people in America who understands that better than most people. The importance of China to Apple cannot be underestimated folks. The Chinese appreciate good things. Ask Mercedes, BMW and European fashion houses.
Earning grow is a key metric to earnings reports? Whoa, that’s simply brilliant.
Can Apple grow meaningfully at this point in time, impacting the bottom line, arguably, so to speak!