Apple's record $83.4B Q4 misses Wall Street expectations

Posted:
in General Discussion edited October 29
Apple earned $83.4 billion in revenue during its fourth fiscal quarter of 2021, missing Wall Street expectations but showing strong growth across its many product categories.

Credit: Andrew O'Hara, AppleInsider
Credit: Andrew O'Hara, AppleInsider


The company published its Q4 2021 earnings on Thursday shortly before a call with investors. Apple's $83.4 billion in revenue represents year-over-year growth of 29% for the period ending in September, with this quarter's earnings per share calculated at $1.24.

Analysts were expecting Apple to report revenue of $85 billion and earnings-per-share of $1.23.

The company's gross margins have reached 42.2%, up from 38.2% in the fourth quarter of 2020.

Revenue from iPhone sales reached $38.9 billion in Q4, a hefty increase from the $26.4 billion it earned in 2020. The tech giant's iPad revenue has also risen 21% to $8.3 billion. Mac revenue was nearly flat, but managed to eke out an all-time record of $9.2 billion for the fourth quarter.

Services also touched all-time highs, hitting $8.8 billion in revenue, which represents 26% year-over-year growth. The Wearables, Home, and Accessories segment has risen 11% from the year prior, reaching $8.8 billion.

Full year sales hit $365.8 billion, up a massive 33% from 2020's $274.5 billion.

"This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways," said Tim Cook, Apple's CEO. "We are infusing our values into everything we make -- moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future."

Apple launched its iPhone 13 lineup during the September quarter, as well as new 10.5-inch iPad and iPad mini devices. Although those devices were debuted toward the end of Q4 2021, Apple's revenue appears to have benefitted from strong iPhone and hardware demand that didn't slow prior to the release of new models.

As has been the case since the pandemic, it is unknown if Apple beat its own expectations, since it didn't provide guidance for the fourth quarter. Guidance for the first quarter of 2022 is not expected, though Cook and CFO Luca Maestri will likely offer commentary on the coming period during today's earning conference call.

Read on AppleInsider
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Comments

  • Reply 1 of 57
    lkrupplkrupp Posts: 9,627member
    Record quarter... Wall Street not happy. Lather, rinse, repeat... ad nauseam. AAPL dropping like a rock in after hours trading. And the beat goes on.
    edited October 28 CuJoYYCjony0jas99magman1979watto_cobra
  • Reply 2 of 57
    lkrupp said:
    Record quarter... Wall Street not happy. Lather, rinse, repeat... ad nauseam. AAPL dropping like a rock in after hours trading. And the beat goes on.
    Could be a fantastic buying opportunity in the morning.
    equality72521kidrock2199jas99magman1979fahlmanwatto_cobra
  • Reply 3 of 57
    mpantonempantone Posts: 1,643member
    AMZN is a better buying opportunity. It's way off it's 52 week high and it's down 4% in after hours trading. FB is also way off its 52 week high also it is mostly unmoved today in after hours.

    AAPL is still very close to its 52 week high. NVDA, NFLX, and TSLA are all trading near their 52 week highs.

    Apple is not doing itself any favors by withholding guidance.
    edited October 28 shareef777williamlondondarkvader
  • Reply 4 of 57
    slurpyslurpy Posts: 5,328member
    30% YoY growth and this “misses” expectations?

    what the fuck has this world come to. 
    lkruppmwhiteequality72521ericthehalfbeeJFC_PAjony0kidrock2199jas99F_Kent_Dpscooter63
  • Reply 5 of 57
    lkrupplkrupp Posts: 9,627member
    slurpy said:
    30% YoY growth and this “misses” expectations?

    what the fuck has this world come to. 
    It’s Apple, what more can anyone say? According to Wall Street the company is a failure. I had to order my financial advisor to put some AAPL in my portfolio. He did so reluctantly. 
    edited October 28 jony0jas99magman19799secondkox2watto_cobra
  • Reply 6 of 57
    Simply astonishing numbers. 
    $1 billion per day in revenue
    … for a full year
    … during a global pandemic
    … that's hindered global manufacturing
    … during a global pandemic
    … and hit global supply chains hard
    … during a global pandemic
    … and during a shortage of silicon
    … during a global pandemic
    … while pushing the frontiers of SoC design
    … during a global pandemic
    … while substantially switching the Mac product line
    … during a global pandemic

    Apple has about 1,000,000,000 credit cards on file. If on average, everyone spends $1 per day, that's $1 billion per day or $365 billion per year. The formula has scaled for at least 10 years now.

    Buck-A-Day business plan.

    AAPL long.
    Happily AAPL long.
    cg27equality72521jony0rezwitskidrock2199fastasleepbaconstangjas99F_Kent_DGG1
  • Reply 7 of 57
    lkrupp said:
    slurpy said:
    30% YoY growth and this “misses” expectations?

    what the fuck has this world come to. 
    It’s Apple, what more can anyone say? According to Wall Street the company is a failure. I had to order my financial advisor to put some AAPL in my portfolio. He did so reluctantly. 
    You’re a lot smarter than your financial advisor.
    JFC_PAjony0kidrock2199jas99danoxpscooter63magman1979sconosciutowatto_cobra
  • Reply 8 of 57
    geekmeegeekmee Posts: 489member
    Apple missed Wall Street’s expectations.
    I think that is code for…Wall Street was wrong!
    Once again.
    edited October 28 JFC_PAjony0baconstangjas99F_Kent_Dpscooter63MacPromagman1979sconosciutofahlman
  • Reply 9 of 57
    mpantonempantone Posts: 1,643member
    slurpy said:
    30% YoY growth and this “misses” expectations?

    what the fuck has this world come to. 
    Every publicly held company is assessed under different expectations. Some companies are expected to have even higher YoY growth. Most are not.

    I realize these concepts are very difficult for many readers at tech news sites to grasp (and not just AI, MacRumors, Macworld).

    And these expectations change over time. Do you remember Apple in 1997? I guarantee you that the Street did not expect 30% YoY growth from AAPL in the mid-Nineties.
    edited October 28 pascal007scartartMplsPwilliamlondoncuriousrun8
  • Reply 10 of 57
    mpantone said:
    slurpy said:
    30% YoY growth and this “misses” expectations?

    what the fuck has this world come to. 
    Every publicly held company is assessed under different expectations. Some companies are expected to have even higher YoY growth. Most are not.

    I realize these concepts are very difficult for many readers at tech news sites to grasp (and not just AI, MacRumors, Macworld).

    And these expectations change over time. Do you remember Apple in 1997? I guarantee you that the Street did not expect 30% YoY growth from AAPL in the mid-Nineties.
    Patronise much?
    JanNLjas99danoxpscooter63dangermouse2magman1979fahlman
  • Reply 11 of 57
    sbdudesbdude Posts: 118member
    Clearly, Apple must no longer be a "disruptor" to warrant a valuation of 300x earnings. /s

    Apple makes 12x the revenue of Tesla, and yet its P/E is over 10x less than Tesla's. Seriously, what has the world come to?
    jony0jas99entropysMacPromagman1979fahlmanwatto_cobra
  • Reply 12 of 57
    Remember when Apple used to refuse to pay dividends?  Wall Street constantly worked to punish Apple for that.  And now they purposely set revenue estimates as a way to control stock price, and make money on the shorts, mostly because Apple is now such a big target and even small swings in either direction can make people millions.  Thankfully Apple does the bare minimum to appease investors who have become used to companies trying to make their numbers look good month by month, or quarter by quarter.
    jas99watto_cobra
  • Reply 13 of 57
    iOS_Guy80 said:
    lkrupp said:
    Record quarter... Wall Street not happy. Lather, rinse, repeat... ad nauseam. AAPL dropping like a rock in after hours trading. And the beat goes on.
    Could be a fantastic buying opportunity in the morning.
    Exactly. I bought some more after hours. 
    jas99magman1979pscooter63watto_cobra
  • Reply 14 of 57
    All excellent news! 

    1. I am looking for a good entry point to buy AAPL shares after unloading them prior to the report. Sell, sell, sell so in a week or so we can get back in!

    2. The new MBP points to a direction where Apple is listening more to customer needs and where they can, implementing them. I still have an iPhone 11 and an AW3 because there is nothing really compelling to upgrade so what I have has to die or they introduce something that is revolutionary, not evolutionary, that I can’t not upgrade. The new MBP’s are revolutionary and I’ll get one for the sheer power they bring both on the CPU and GPU. I am not a pretend film maker or pro photographer who wants to use an iPhone 13 to make the next big hit or capture another sunset. I am not old and prone to falling so don’t need a new watch. While chip constraints may play into this I am not hearing that there are a lot of people who want an iPad or iPhone 13 and can’t get it. People want Apple to innovate and no doubt they will but outside of the MBP it has been kinda a big yawn. 
    baconstangjas99
  • Reply 15 of 57
    lkrupplkrupp Posts: 9,627member

    Apple quarterly sales miss for first time since 2018 amid supply constraints


    This is the headline from the MarketWatch website.

    https://www.marketwatch.com/story/apple-sales-miss-for-first-time-since-2018-stock-falls-after-earnings-11635454056?mod=home-page

    The article then goes on to report huge increases in sales of all products and services. Can’t these bozos keep their bullshit straight?
    jas99F_Kent_Dmagman1979williamlondonpscooter63sconosciutoBeatsfahlmanwatto_cobra
  • Reply 16 of 57
    lkrupp said:

    Apple quarterly sales miss for first time since 2018 amid supply constraints


    This is the headline from the MarketWatch website.

    https://www.marketwatch.com/story/apple-sales-miss-for-first-time-since-2018-stock-falls-after-earnings-11635454056?mod=home-page

    The article then goes on to report huge increases in sales of all products and services. Can’t these bozos keep their bullshit straight?
    It is expectations. For some mysterious reason market has low expectations for MSFT and it enables MSFT to beat expectations. So does GOOGL. 
    baconstangjas99williamlondonBeats
  • Reply 17 of 57
    What is the outlook for MBP this quarter in CC? 
  • Reply 18 of 57
    bulk001 said:
    All excellent news! 

    1. I am looking for a good entry point to buy AAPL shares after unloading them prior to the report. Sell, sell, sell so in a week or so we can get back in!

    2. The new MBP points to a direction where Apple is listening more to customer needs and where they can, implementing them. I still have an iPhone 11 and an AW3 because there is nothing really compelling to upgrade so what I have has to die or they introduce something that is revolutionary, not evolutionary, that I can’t not upgrade. The new MBP’s are revolutionary and I’ll get one for the sheer power they bring both on the CPU and GPU. I am not a pretend film maker or pro photographer who wants to use an iPhone 13 to make the next big hit or capture another sunset. I am not old and prone to falling so don’t need a new watch. While chip constraints may play into this I am not hearing that there are a lot of people who want an iPad or iPhone 13 and can’t get it. People want Apple to innovate and no doubt they will but outside of the MBP it has been kinda a big yawn. 
    You don’t sell apple you hold it and gradually add to the position.
    jas99sconosciuto
  • Reply 19 of 57
    rmoormoo Posts: 21member
    Folks relax.

    A lot of people thought that Apple would be much less impacted by the chip shortage and supply chain issues than everyone else because of Tim Cook's legendary experience in this area as well as Apple's ability to negotiate to be first in line. Seriously, I have seen comments on various blogs and sites bragging on this idea, but Apple indicated that they were impacted like everybody else, if not necessarily to the degree of everybody else.

    Also, for anyone who was thinking that Apple - unlike everybody else - would be able to recover relatively quickly, Tim Cook stated that this was going to continue well into 2022:  https://www.zdnet.com/article/apple-fiscal-q4-revenue-misses-expectations-eps-in-line-citing-uncertain-macro-environment/

    Really, what do you all want from the media and the markets on this anyway? It isn't their job to be Apple boosters and cheerleaders. If a company misses their projections, their stock is going to fall. For the folks who claimed "but Apple broke records and if the Wall Street predictions were off that was their mistake and Apple shouldn't take a hit for that" ... please add 2+2. The Wall Street folks PREDICTED that Apple would break records. Look, if the record is 5, the prediction was 10 and then yes, they predicted that Apple would set a record. 

    Guys, look. Intel met their projects and their stock dropped anyway. Why? Because - like Apple - Intel stated that they were impacted by the chip shortage and would be impacted for the foreseeable future. And because - like Apple - though Intel made a ton on some product lines (CPUs for servers and data centers like Apple on services) they made less than expected on others (PCs, like Apple made less than expected on the iPhone 13). In addition, while Intel met their projections and had YoY growth, AMD's growth was speculated to be much higher (which turned out to be true). 

    So no, the markets aren't being unfair to Apple and neither are the article writers. Good grief, the people on their site are acting like the commenters on blogs of sports teams who never win championships. Everything other than unadulterated praise and unconditional love gets treated as a slight. Every positive comment about a competitor is proof that the world is against you. 
    longpath
  • Reply 20 of 57
    iOS_Guy80 said:
    lkrupp said:
    slurpy said:
    30% YoY growth and this “misses” expectations?

    what the fuck has this world come to. 
    It’s Apple, what more can anyone say? According to Wall Street the company is a failure. I had to order my financial advisor to put some AAPL in my portfolio. He did so reluctantly. 
    You’re a lot smarter than your financial advisor.
    I had some money at UBS for a while with an advisor who over the phone was questioning why I was so heavy into AAPL, who he called “a media darling” (lol) and asked if I had heard about a company called Qualcomm (lololololol). Moved to Scottrade (now absorbed into TD Ameritrade) and at some point got a call from them talking about how I was very “tech top heavy” in my portfolio and was selling financial advisor services. Needless to say, I declined. 
    jas99danoxpscooter63sconosciutoBeatslongpathwatto_cobra
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