Apple steamrolls Street, posts all-time record quarterly earnings

Apple today announced financial results for its fiscal 2021 third quarter ended June 26, 2021. The Company posted a June quarter record revenue of $81.4 billion, up 36 percent year over year, and quarterly earnings per diluted share of $1.30.

Apple Park in Cupertino, California
Apple Park in Cupertino, California

“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO, in a statement. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO, in a statement. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. The dividend is payable on August 12, 2021 to shareholders of record as of the close of business on August 9, 2021.

The breakdown:

• Revenue: $81.4 billion
• EPS: $1.30
• iPhone revenue: $39.570 billion
• Services revenue: $17.486 billion
• Mac revenue: $8.235 billion
• Wearables, Home and Accessories: $8.775 billion
• iPad revenue: $7.368 billion

Here’s what Wall Street was expecting (via Refinitiv):

• Revenue: $73.30 billion
• EPS: $1.01
• iPhone revenue: $34.01 billion
• Services revenue: $16.33 billion
• Mac revenue: $8.07 billion
• Wearables, Home and Accessories: $7.80 billion
• iPad revenue: $7.15 billion
• Gross margin: 41.9% estimated

MacDailyNews Take: Supercycle!

25 Comments

      1. “Priced in” is a Wallstreet fiction. It doesn’t exist, except as an explanation for the idiotic, sell offs based on triple witching Mondays. Apple is having a decent year in the the market, despite a specatacular year. Wallstreet is punishing AAPL, because it hates being shown as so utterly clueless about Apple.

        1. As AAPL has much higher percentage of independent stock holders than their peers, you’ll have to blame the changes of the stock price (up or down) primarily on that large community of independent stockholders than the large brokerages. If the stock is not moving, it also basically means independent stockholders are not convinced on significantly buying or selling AAPL on current news.

        2. Wall Street isn’t a living thing that hates or loves, nor is there one point of view among the people (and trading algorithms) that make up its trading patterns.

          It’s point to anthropomorphize the stock market, which – after news has broken – is primarily a method of discounting of expected news in the FUTURE (i.e., from 10 nanseconds (machine trading algorithms) to 10 days to ten weeks or a year or more into the future (based on the behavior of different kinds of traders).

          And it doesn’t have time for or an interest in vendettas.

  1. AAPL enjoyed a blowout quarter. Looking down the road, the markets seem to be anticipating a downturn, possibly a significant one. AAPL is one way to ride out a possible storm.

  2. I think the terms of crushing, blockbuster, spectacular, awesome and a host of other superlatives should stop being used for Apple’s earnings report. The terms of mediocre or middling seem more appropriate. Apple’s earnings really don’t have much of a connection to the share price, so it’s rather confusing to many people. I’m not surprised at what happened to Apple’s stock price as it could have been a lot worse, but it’s obvious investors are expecting much, much more from Apple and Apple is clearly not meeting their expectations. So I’m not sure exactly what the problem is. Either investors are expecting too much or Apple isn’t delivering enough. It’s hard to say. Because Apple is a $2.4T company, I tend to figure investors are expecting too much from Apple.

    I no longer fret about what Apple’s earnings will be. Apple has likely made me financially secure for life, so I have no complaints. I certainly won’t lose any sleep tonight wondering why Apple went down in value while raking in hundreds of billions of dollars quarter after quarter after quarter. I simply accept it as a market fact.

    1. You’re right about investors taking a long term view, but the fluctuations in AAPL are largely down to speculators, who take very short term views.

      The fundamentals of AAPL are excellent, which makes for a solid investment. I have no worries about the future for AAPL as it has been performing spectacularly well for all the years I’ve owned some.

      Speculators worry that a spectacular quarter means that it’s too high a bar to beat next time around,, but Apple seems to keep on going. Analysts working for stockbrokers need volatility in the market, because money is earned when shares are traded, therefore analysts are looking for anything to trigger trading. It could be a perceived weak point, or it could be strength, which would make people buy. It’s hard to see any weakness other than declining to offer guidance, so my gut reaction is that traders ( speculators ) will be buying rather than selling.

  3. Expecting AAPL earnings to coincide with a direct move in stock price on the day, or two, around reporting is a mistake. It’s happened in history, but a direct correlation occurs the minority of the time.

    The investor mindset looks on a longer time-scape to determine a stock’s true value. In this realm, AAPL is clearly a winner. Besides regular EPS, investors get a decent dividend and a linked to a predictable, stable and financially conservative company. Hardly mediocre, or middling.

    Any co that consistently produces margin levels in the 40% realm ISN’T mediocre!

    1. I agree with Jim Creamer, except for the “decent dividend.” AAPL’s dividend, for a $2.4T company, is pathetic. Raise the dividend, reduce the buybacks.

  4. Cherry picking Tim Cook on Apple’s record quarter:

    ~ The last 4 quarters for Mac have been the best 4 quarters ever for Mac

    ~ Mac revenue: $8.235 billion

    Imagine that.

    The one flagship product that built Apple from the ground up debut in 1984 to present day record quarterly earnings was mostly ignored by Team Apple for years.

    Jony Ive used the flagship MacPro as his personal redesign playground more concerned with winning industrial design awards and less interested in satisfying PROS by removing ports and limiting expansion. Then it sat idle with no major upgrades for over six years. Meantime, Cook sat idly by on his iPad pretending it can replace a MacPRO.

    That said, the newest MacPRO replaced an ill advised strategy. Awesome machine, but again, the price is ridiculous! CPU stand a thousand dollars?

    Moving forward as I have posted recently a couple times, with the MAGICAL M1 Silicon Apple could easily double or triple market share in a few short years.

    Two major roadblocks — PERCEPTION and PRICE. If Apple lowered their elitist fashion branding high pricing, competed spec by spec with a superior hardware build, they would eliminate overnight negative perceptions from IT managers and Windows users dating back to late 1980s.

    Git ‘er done and to the moon Alice!… 💻

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