Apple bulldozes the Street with all-time record quarterly earnings

Apple today announced financial results for its fiscal 2021 first quarter ended December 26, 2020. The Company posted all-time record revenue of $111.4 billion, up 21 percent year over year, and quarterly earnings per diluted share of $1.68, up 35 percent. International sales accounted for 64 percent of the quarter’s revenue.

Apple logo“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” said Tim Cook, Apple’s CEO. “We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we’re a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”

“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These results helped us generate record operating cash flow of $38.8 billion. We also returned over $30 billion to shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time.”

Apple Q121 results:

• Revenue: $111.4 billion (vs. $91.819 YOY)
• EPS: $1.68 (vs. $1.25 YOY)
• iPhone: $65.597 (vs. $55.957 YOY)
• Services: $15.761 (vs. $12.715 YOY)
• Wearables, Home and Accessories revenue: $12.971 (vs. $10.010 YOY)
• Mac: $8.675 (vs. $7.160 YOY)
• iPad: $8.435 (vs. $5.977 YOY)

Prior to Apple’s earnings release, here’s what Wall Street expected (Refinitiv and FactSet consensus estimates):

• Revenue: $103.28 billion
• EPS: $1.41
• iPhone: $59.6 billion
• Services: $15.2 billion
• Wearables, Home and Accessories: $11.5 billion
• Mac: $8.6 billion
• iPad: $7.4 billion

Apple’s Board of Directors has declared a cash dividend of $0.205 per share of the Company’s common stock. The dividend is payable on February 11, 2021 to shareholders of record as of the close of business on February 8, 2021.

Apple will provide live streaming of its Q1 2021 financial results conference call beginning at 2:00 p.m. PT on January 27, 2021 at apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.

MacDailyNews Take: Apple just bulldozed the Street, then backed up and drove over it again!

17 Comments

  1. Aaand, Apple is down so far after hours. I’m surprised, really, because that hasn’t happened for some time. But the market was crazy today, being concerned about the virus and economy.

  2. The NAYSAYERS can not find a DAM THING WRONG with this report. OH, But they will TRY!

    ps. These analists say just over $100 Billion… um The number is $111.4 BILLION. Good Grief. GMAFBA.

  3. Analysts were hyping AAPL prior to earnings, so the street expected a massive quarter. Despite being beyond all the estimates, AAPL gets kicked again in after market. No surprise. I am sure that lame analyst explanations will include that the share price was already ‘baked in’, or the street wanted a really huge massive quarter and not just a massive quarter. Regardless, the numbers are staggering and will move AAPL despite resistance by naysayers.

        1. I agree 100% they should increase dividends. “Profits rose 29% or $28.76B in the quarter” and are still holding way more than they dished out all of last year ($30B) to shareholders. They could easily raise the rate 10% to .2255 and still not put a dent in their cash holdings. I’m thinking 15%-18% makes much more sense and is easily sustainable.

  4. The earnings report — and the performance of Apple as a company — has very little to do with the stock performance. It’s just background noise for the market manipulators, short sellers, etc. to do what they do. And they do it Every. Single. Time.

  5. Apple down! Sell Apple and buy Gamestop or AMC Entertainment stock if you want immediate share gains. Losing momentum stocks beat high-revenue and high-profit stocks every time. /s

    I suppose some Apple shareholders must be upset that Apple shares didn’t rise on earnings, but I’m sure Apple shares will rise over the next week or two. Just have patience. Apple has done everything that was necessary and got excellent results. I think investors are just a little timid (sissies), but they’ll come around in time. Apple is making a boatload of money and can double-down on R&D to pound the competition.

    I’d love to see Apple give higher dividends, but knowing Apple, they’ll be sure to spend even more on stock buybacks. I’m not crazy about buybacks, but Apple seems set on doing them instead of higher dividends or more video content purchases, or acquisitions. I shouldn’t complain as I have done well by Apple far more than I ever expected. Apple seems to be killing it.

    1. “I shouldn’t complain as I have done well by Apple far more than I ever expected”

      NO, you are not complaining, you are BRAGGING in every post.

      We got it years ago…

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