Apple demolishes Street, posts all-time record quarterly earnings

Apple demolishes Street, posts all-time record quarterly earnings. Image: Apple Park in Cupertino, California
Apple Park in Cupertino, California

Apple today announced financial results for its fiscal 2021 second quarter ended March 27, 2021. The Company posted a March quarter record revenue of $89.6 billion, up 54 percent year over year, and quarterly earnings per diluted share of $1.40. International sales accounted for 67 percent of the quarter’s revenue.

“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Tim Cook, Apple’s CEO. “Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world. That certainly begins with products like the all-new iMac and iPad Pro, but it extends to efforts like the 8 gigawatts of new clean energy we’ll help bring onto the grid and our $430 billion investment in the United States over the next 5 years.”

“We are proud of our March quarter performance, which included revenue records in each of our geographic segments and strong double-digit growth in each of our product categories, driving our installed base of active devices to an all-time high,” said Luca Maestri, Apple’s CFO. “These results allowed us to generate operating cash flow of $24 billion and return nearly $23 billion to shareholders during the quarter. We are confident in our future and continue to make significant investments to support our long-term plans and enrich our customers’ lives.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock, an increase of 7 percent. The dividend is payable on May 13, 2021 to shareholders of record as of the close of business on May 10, 2021. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.

Apple will provide live streaming of its Q2 2021 financial results conference call beginning at 2:00 p.m. PT on April 28, 2021 at apple.com/investor/earnings-call. This webcast will also be available for replay for approximately two weeks thereafter.

Apple Q121 results:

• Revenue: $89.584 billion (vs. $58.313 YOY)
• EPS: $1.40 (vs. $0.64 YOY)
• iPhone: $47.938 billion (vs. $28.962 billion YOY)
• Services: $16.901 billion (vs. $13.348 billion YOY)
• Mac: $9.102 billion (vs. $5.351 billion YOY)
• Wearables, Home and Accessories revenue: $7.836 billion (vs. $6.284 billion YOY)
• iPad: $7.807 billion (vs. $4.368 billion YOY)

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

• Revenue: $77.36 billion
• EPS: $0.99
• iPhone: $40.80 billion
• Services: $15.5 billion
• Mac: $6.90 billion
• Wearables, Home and Accessories: $7.45 billion
• iPad: $5.79 billion

MacDailyNews Take:
Boom!

31 Comments

  1. Damn Cook & Co are firing on all cylinders.
    And so many new interesting products on the horizon.

    Of course there is the usual naysayers, but they are the minority now.

    1. If my math is correct, they had more than a 53% Revenue increase YOY for the quarter and literally demolished the analyst’s estimates. What am I missing? Even if APPL was at $120 and the stock reflected only a 30% increase, it would be $156……I just don’t get it.

      1. Stock price reflects forward-looking expectations for earnings.

        Cook for once provided forward-looking guidance, and it wasn’t great news.

        You can speculate all you want, but the way I see it, the future stock price was tempered not necessarily by what Apple is doing, but by some unavoidable issues in the future:

        Apple says they will be impacted by chip shortages
        Reading the tea leaves, Cook seemed to indicate that the super expensive iPhone “pro” models aren’t selling all that great. The mainstream models sold well last 2 quarters, so there is no big iPhone cycle expected this year, especially if the pandemic rolls on.
        Some buyers have concern over the M1/M2 rollout and are withholding their new Mac purchase until they get hardware options that fulfull their needs and exceed the capabilities that they already have in their Intel Macs.
        Cook announced billions in infrastructure spending, which comes with risk such as management distraction.
        USA seems to be stable but several regions’ economy is not stellar.
        Several Apple businesses — airtags, TV, etc — are looked on as slow growth plays. Apple lives or dies based on iPhone sales, period.
        Lastly, bipartisan congressional inquiry has been sniffing around at Big Tech, something that everyone has been calling for years. Finally now it seems there may be some new transparency or power limitation coming. It probably won’t hit Apple as hard as the other giants, but it has to be factored in.

        1. The only thing remotely accurate in your statements was the Big Tech breakup issue. While i don’t personally it sticks to apple like it does facebook and google i believe it is unavoidable at this point with this congress.

          That being said what the heck are you talking about m1/m2 rollout? did you miss mac sales were up 70+%? what in that number besides your own personal preference indicates there is an issue with adoption. Then move over to ipad also up 70%+ before the new model introduced with m1 streamlining spples chip supply chain further.

          My reading of the tea leaves did not indicate iphone pro sales were slow at all. If that was the case why would they roll out a new color to increase inventory hold demand and dilute the customer base for in stock phones? notice we haven’t heard 1 single report of iphone production cuts this year? thats because demand is strong and with record quarterly numbers in iphone to say it is clearly not a supercycle is is a stretch even if your last name is schiff.

          Airtag had zero impact on growth as they had no impact on sales numbers and sold out within an hour or 2 but not during this period. Wearables growth was slower but after 5+ years of double digit growth some tempering was expected especially without a new base airpod launch in holiday quarter, and strong availability of apply watch during the holiday shopping season. Now we have a new apple tv, and airpods ont he way so to me this would only be a concern if it carried through the q4 this year.

          Headwinds apple may face but they are not on the product and supply chain side. the biggest headwinds facing apple are governments eager to get their cut and break up the most successful and adept company in the world.

  2. Great to read the flagship product Mac that built Apple, had the three highest quarters of record sales in a row. Number two in sales after the iPhone. Yes, dance with the one that brung ya.

    Except for the amazing M1 chip, majority of huge sales growth goes to incremental regular upgrades minus groundbreaking revolutionary products.

    It is what it is…👍🏻

    1. And to think the Arm based Mac revolution and all the new compatibilities and technological advantages it promises has barely begun. Cook has certainly proved many of us wrong in recent times, I really didn’t think he had it in him, the post Jobs era has truly taken off and the fears we had now but a distant memory. The critics will be crying into their bedtime hot chocolate tonight even as their, demented ever more deluded and desperate bile will no doubt reach out hopelessly for something to cling onto in their inevitable shock and anger fuelled morning rants. Delicious.

  3. Like I said, nothing revolutionary released with the exception of M1 chip. We shall see what the future holds, I have doubts about Apple creativity under the master beancounter. The jury is still out…

      1. Yes, smell the iPhone gravy train money and all other products handed to Cook by Jobs.

        Like I said, beancounter CEO with ZERO creative talent is a caretaker of profits, not a revolutionary inventor that causes concern for the future.

        Cook is Steve’s biggest mistake and must go as CEO. Period…

        1. What business enterprise in the history of the world ever fired its chief manager after he increased company revenue by 54% year over year in the middle of a global economic crisis?

          Can’t you grasp the absurdity of that? It is right up there with claiming that conservatives are being silenced when they have the highest-rated radio and cable TV shows.

          1. Once again you cannot debate one point in my post. Because you know I’m spot on. Cook is a caretaker CEO watching the balance sheet without a creative bone in his body.

            Name me one Fortune 500 CEO that cannot do the same with the keys to the kingdom handed to them and handpicked by the legendary Steve Jobs riding first class in the iPhone gravy train. Again, Cook is Steve’s biggest mistake.

            Instead, we get more of the same TxUseless DEFENSIVE DEFLECTION that somehow Cook has mystical powers to increase profits 54% profiting from a pandemic. No, that was a natural extension of the times we live in like so many other industries with record breaking profits and cheerleader Cook did NOTHING special. Certainly to be expected from the Numero Uno Cook APOLOGIST.

            Forstall challenged Cook and Ive became too challenging to both their fragile insecure egos and was ousted after a stellar Apple career for one mistake. Cook then allowed Ive to run rampant ignoring the flagship MacPro for over six years seriously ticking off the Mac faithful. What great management skills, Tim. You could not handle Jony and he left for uncertain reasons Apple kept a lid on.

            For the revolutionary future of Apple products, Apple NEEDS a creative genius CEO with a firm hand such as Scott Forstall, Elon Musk or any other. Show the door to SJW Cook drowning Apple in controversial woke politics…

            1. “Name me one Fortune 500 CEO that cannot do the same with the keys to the kingdom handed to them and handpicked by the legendary Steve Jobs riding first class in the iPhone gravy train.” By your criteria, the universe of candidates is a null set. Steve Jobs only handpicked one successor: Tim Cook. And Tim not only steered Apple to become the most valuable company in the world, but he’s on track to outdo himself and steer it on to a $3 TRILLION valuation. But shall I nonetheless name a CEO who couldn’t have come close to doing what Tim Cook has done? This one’s too easy: Michael Dell.

            2. Are you sure Michael Dell could not do the same handed Apple by Jobs? Certainly, I don’t care for the man but it is difficult to argue another CEO, particularly a tech CEO, could not do the same. Cook is nothing special, he was in the right place at the right time and gifted his position by Jobs. He is milquetoast and as exciting as wet plywood the woke preachy SJW…

          1. Jim, ignorant comment.

            My first Apple purchase was my Lisa in 1982. Since then purchased dozens of Apple computers and devices.

            So the snowflake living in mom’s basement can’t handle Apple constructive criticism?

            Tell me again, who the “clown” is around here…

        2. LMAO Tim has done exactly what he should have done. Made the more and more about services. At some point, the mobile sector gets saturated. Hardware alone wasn’t going to drive Apple forever.

        3. I don’t know you, I will never meet you – two things I am profoundly pleased about, but you come across as a quarrelsome, frustrated, little man trying to punch above his weight. And missing every time. Splenetic, red faced, cantankerous, and awesomely uninformed yet convinced that his backwards-looking sociopathic revisionist and sclerotic minority viewpoints trump reality.
          A perpetual squashed grape excuse for a human being. A throwback. An anamoly, an irrelevancy. A modern day anachronism welded to resentment, driven by low self esteem, fueled by entitlement and enraged by competence.
          A square peg in a round hole no less.
          I’m totally not interested in your route to angry old man status but revel deliciously in the thought that Tim Cook would just flick you off his iPad like a speck of dust.
          Steve Job’s worst mistake rules. Totally.

    1. The M1 chip is revolutionary. Your complaint is like saying “except for the $50 billion in profit we made no money this year.” Of COURSE everything is going to be a failure if you disregard all the successes. good grief!

    1. You’re being absurd again. Are you confusing speculators with short-sellers? Do you know what you’re talking about? It sure doesn’t look like it. How would you propose to differentiate speculators from long-term investors? Apple just told you that you have until May 10 to get in on the next dividend payout (not that you should buy AAPL for the dividends — there are much better deals out there). So, are you in or not? If you are in, does that make you a speculator (even though it’s a sure thing.)

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.