Apple on Wednesday 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.
Bill Maurer for Seeking Alpha:
While expectations were certainly high given January’s blowout, Apple delivered a quarter that was likely even more impressive than its holiday one.
I’m basically speechless at the growth Apple was able to show here. Revenues for the iPhone were up more than 65.5% over the prior year period, with the Mac up more than 70% and iPad up nearly 79%. The Wearables and other category grew by nearly 25%, while services revenues were up 26.6%. In total, Apple smashed revenue estimates by more than $12.3 billion, showing overall revenue growth of 53.63%.
With Apple smashing estimates yet again, it’s time for me to update my Apple fair value. I previously valued the name at $138.23, which was a 28.5 multiple on $4.85 of earnings per share. I’m only going to bump up my multiple here to 29 times, because there is still some risk once the Fed starts to taper, but my earnings estimate over the next year or so should be about $5.25, implying a fair value of $152.25, or about $15 above where shares were trading around 5PM on Wednesday afternoon.
MacDailyNews Note: Currently, Apple is trading at $133.75, up a mere 17-cents or 0.13%. Cupertino, fire up the buybacks!
No blowout Apple quarter goes unpunished by Wall Street.
Investors are running for the exits now as AAPL is now -0.8% in VERY heavy selling. Volumes are off scale, the selling pressure is immense.
Tim Cook must be so proud today.
You’re an idiot, Tim Apple. No better than Jane Tingler, the LA tripolar transartist formerly known as DinglerX2
Wow you really can’t win – Now analyst say that Apple’s quarter was too good that is why the stock is getting hammered. Even with a bad quarter they are massively profitable. Wall Street is just messed up.Facebook says they are going to get hit because of the Apple privacy thing and their stock is soaring. Makes no freaking sense.
CRAZY!!! Wall street is a racket!
Analysts and investors saying it’s a bad thing that Apple will not be able to repeat a 54% growth YOY is truly asinine. If next quarter Apple has “only” a 33% growth YOY then pundits will be screaming that Apple is nearing its end. If Apple “just” does 20% growth YOY for the next quarter investors should be dancing in the streets.
Anyone who thinks a 54% growth is (or should be) sustainable for a company the size of Apple is an idiot. It’s that simple. This quarter was a fluke. A fantastic fluke, but a fluke. Many things combined to make this past quarter what it was. Every major segment of Apple’s sales experienced double digit growth YOY. While it is possible to do again and again, it is extremely unlikely.
Apple should not be trying to replace drivers with their technology. They should replace wall street instead. Wall street is probably the least efficient thing in the economy right now. All they actually do is move money around, but they suck trillions out of the pockets of people who do real work.
If you haven’t figured out yet that Wall Street is just a casino for wealthy people — and has NOTHING to do with the performance of a company — then you probably shouldn’t be playing there.
I believe Warren Buffet and scores of other would disagree with the statement, “NOTHING to do with the performance of a company.”
He and the scores of many spend the majority of their days investigating the financial health/trajectory of companies. If it’s merely a casino, Warren’s billions seem to prove the “house” is loosing BigTime…when in fact his company and those investing with him have gained handsomely because of RESEARCH…not gambling.
The “Father of Value Investing” and Buffet’s mentor (B Graham) speaks in direct contrast to the “casino” bromide….
“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
“replace drivers?”
“Speaking of moving $$ around and sucking trillions”…sounds like buybacks to me.
“Buy on the rumor, sell on the news.”
It’s just Wall Street being Wall Street. Relax, things will balance out.
So, why didn’t that happen with Facebook. Their investors bought on the rumors and bought on the news. Apple shareholders are sissies. Just kidding.
With the buybacks in place, I don’t think it matters if Apple’s share value drops. If Apple is going to spend/waste good money on buybacks then I want to see as many shares disappear as possible by the end of the year. I honestly would prefer higher dividends to buybacks, but Apple is stubborn. I believe Apple is highly favoring institutional investors and Apple executives with hundreds of thousands of shares. I just hope they know what they’re doing for the benefit of all investors, big and small.
It annoys me to hear analysts say Apple can’t possibly sustain hardware sales. That’s just based on guesswork. Why not use that same excuse for all companies who have good quarters? That excuse seems effed up to me if only Apple is seen at risk.
Anybody looking at one-day price fluctuations as an impetus to buy/sell, should just walk away.
Now.
This is the end result of releasing truly awesome new hardware, from the M1 to the Magic Keyboards.
The M1 MacBook Air is arguably my favorite laptop, though it may never fully remove the crown from my 2013 MBP.
I have two M1 MBAs. My daughter’s is the base model with a 7-core GPU. I can’t tell the difference.
Look at the price tag….
😉