Apple reported its best ever June quarter, easily beating expectations and showing that earnings in the tech sector have still not peaked.
Apple’s earnings report is full of highlights, and with a company the size of Apple, the numbers are huge.
Five core metrics from the earnings report will be brought to focus that clearly outline why it was another great quarter.
There is always a lot of anxiety, euphoria and general tension before Big Apple (AAPL) reports its highly-awaited earnings. This time there has been substantially less doom and gloom concerns related to iPhone units and sales than in previous reports. However, this time it was more the question whether Apple, unlike two of the other FAANG members, Facebook (FB) and Netflix (NFLX), can provide some level of comfort to a rather anxious market following the more than 20% selloff in Facebook.
Apple is the undisputed leader in the consumer tech industry with unrivaled profitability, a giant pile of cash and the number 1 company in terms of market cap.
Source: Digital Trends, ALL COURTESY remains
With the stock rising by 3.5% in after-hours trading, investors may wonder whether Apple is finally overvalued, and the following 5 key metrics clearly show that Apple remains a great investment case.
Source: Google Finance
Again, Apple crushed estimates, now beating expectations in 11 out of the last 14 quarters. Apple recorded Q3 revenues of $53.3B right at the top end of its $51.5B to $53.5B guidance and a whopping $870M above consensus to post 17% Y/Y growth. On a sequential basis, growth even accelerated by 1pp, which is more than just staggering for an almost $1T company. EPS came in at $2.34 which represents 40% Y/Y growth, and while a lot of that should be driven by the tax reform, the other large portion is attributable to that strong double-digit revenue growth rates.