5 reasons why Apple’s Q214 earnings report was huge

“For a while it has been tough to own Apple (AAPL),” Jay M. Taylor writes for Seeking Alpha. “But now Apple investors have something to get excited about.”

“Though the headline numbers are huge, this earnings report was much bigger than the headline numbers. Yesterday’s announcement was filled with news that should be music to the ears of shareholders,” Taylor writes. “I’ve highlighted the five major reasons that the Apple earnings report is such a big deal.”

1. Apple destroyed analyst expectations for EPS and revenue
2. Apple’s gross product margin has stabilized
3. Apple boosted its stock repurchase program: “Apple’s buyback program alone would be among the world’s 100 largest companies.”
4. Apple announced a 7:1 stock split
5. Apple boosted its dividend and plans to continue doing so

“I think what Apple just put in place will attract investors, not just traders,” Taylor writes. “What I heard yesterday is exactly what I and many other Apple investors have been waiting for. A cash-rich, shareholder-friendly, money-printing machine is exactly the kind of company I want to own for a long time. And that’s exactly what is going to attract new investors to Apple right now and send shares flying higher.”

Read more in the full article here.

Related articles:
Apple CEO Cook defies naysayers with sales surge; boosts buyback, splits stock 7-for-1 – April 24, 2014
Apple jolts Wall Street, resets the clock as investors await next big thing – April 24, 2014
To everyone whose analyst told them to ‘buy on the dip’ after Apple earnings: Get a new analyst – April 24, 2014
Apple shares soar after stellar earnings report – April 24, 2014
Apple’s 7-for-1 share split makes joining the Dow more likely – April 23, 2014
MacDailyNews presents live notes from Apple’s Q214 Conference Call – April 23, 2014
Apple announces 7-for-1 stock split; boosts dividend, ups buybacks to $90 billion – April 23, 2014
Apple smashes Street with revenue of $45.65 billion in Q214 – April 23, 2014

18 Comments

  1. It hasn’t been tough to own Apple at all. My stock is up over 700% since 2005.
    In comparison, the best 10 year performance from the mutual funds I can get from Fidelity with my 401k is 12% per annum.

      1. If you look at it the graph, AAPL is generally a good performer. Over the last 12 months, it’s up 34% (the S&P was up 20% for comparison). Over the last 4 years, AAPL is up 134% (s&p was up 73%). It also beat the S&P over the last 3 years, 5 years, and 6-10 years, often by quite a lot.

        It only looks bad a if you start from 1.5 to 2 years ago. And given Apple’s mostly positive long term trends, I think even the unlucky ones who invested then are likely to see good returns given time.

  2. Yes, yesterday’s earnings report was huge . . . partly because of the announcement Angela Ahrendts will soon be onboard.

    I predict Ms. Ahrendts is going to surprise a lot of people with her insight and leadership.

    1. I hope Ahrendts is a good fit. All she has done is fashion and Apple doesn’t work the way fashion companies do. Most of her career was a s a merchandiser and they are a dime a dozen.Fashion Is a whole other world. And lately she’s only worked in very high end. Apple is not cheap , but not in that price category. So I can’t imagine what she can do for Apple.. Tim must know something nobody else does

      1. She has stopped the merchandise she was responsible for from being the call sign of chavs actually and brought it back to being a quality brand again. However if you can afford Apple products you sure can afford Burberry. Not only that though she transformed the online presence of the company to be one of the best around and increasingly Apple is going to have to work in ‘fashion’ to expand so the perfect fit in my opinion.

  3. In a quarter where there were no new product announcements Apple increased revenue and profits YoY.

    In a quarter where distribution didn’t reach new markets Apple increased revenue and profits YoY.

    In a quarter where there were no “Wow” new advertising campaigns Apple increased revenue and profits YoY.

    Forget “excitement” following the earnings release (that’s just analysts who were wrong excited that Apple gave them a face-saving way to correct their predictions) and ask what’s really going on at Apple.

    Two things, I think:

    1) Consumers love Apple products and are choosing them over the “competition.” That’s the revenue side.
    2) Tim Cook’s supply-chain genius is reaping lower cost-of-goods-sold numbers on this existing product mix. That’s the profit side.

    Pretty simple, really. And really good for AAPL.

    1. I weigh so much on AAPL in my portfolio, so I just have done the same like you for peace of mind, but leave some for split and the buybacks would kick in later on.

  4. The main uppercut on AAPL’s $700 drop to $390 was the recession, and not anything else, compared to any other major tech company. Look at the chart. A few months late on the iMac…c’mon. Most people make money decisions based upon headlines. Their trust is in the media and analysts guesses, not in a distinguishable product line, a secure OS, and solid software, major identity penetration into all major countries of the world, and billions in cash reserve.

    Google, on the other hand, has licensable ads, a licensable OS, a moving barge, and a beta Google Glass Spydevice

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