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.
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!