Post Earnings Coverage as Apple Reported Record Q1 Results; Outperformed Projections

Upcoming AWS Coverage on Sony Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 7, 2017 / Active Wall St. announces its post-earnings coverage on Apple Inc. (NASDAQ: AAPL). The Company disclosed its financial results for the first quarter fiscal 2017 (Q1 FY17) on January 31, 2017. The Cupertino, California-based Company’s posted all-time record quarterly revenues and earnings per diluted share, beating market consensus estimates. Register with us now for your free membership at:

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One of Apple’s competitors within the Electronic Equipment space, Sony Corp. (NYSE: SNE), is set to report Q2 fiscal 2016 results today February 02, 2017. AWS will be initiating a research report on Sony in the coming days.

Today, AWS is promoting its earnings coverage on AAPL; touching on SNE. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=AAPL

http://www.activewallst.com/registration-3/?symbol=SNE

Earnings Reviewed

In Q1 FY17, Apple reported net sales of $78.35 billion compared to $75.87 billion recorded at the end of Q1 FY16. Net sales numbers for the reported quarter outperformed market expectations of $76.93 billion.

The iPhone maker reported Q1 FY17 net income of $17.89 billion, or $3.36 per diluted share, versus $18.36 billion, or $3.28 per diluted share, in Q1 FY16. The Company’s diluted earnings per share also outperformed market earnings estimates of $3.22 per diluted share.

Operating Metrics

For the three months ended on December 31, 2016, the Company posted gross margin of $30.18 billion, or 38.5% of net sales, compared to $30.42 billion, or 40.1% of net sales, in the prior year quarter. The Company’s operating income for Q1 FY17 came in at $23.36 billion versus $24.17 billion in Q1 FY16. The Company operating expenses increased to $6.82 billion, or 9% of net sales, during Q1 FY17 from $6.25 billion, or 8% of net sales, in the previous year corresponding quarter.

Segment Performance

During Q1 FY17, iPhone unit sales were 78.29 million, up 5% y-o-y. In the reported quarter, the Company generated total revenues of $54.38 billion from iPhone sales, which was also 5% above the $51.64 billion reported in the year ago same quarter. Furthermore, iPhone sales contributed 69% to total revenue in Q1 FY17 compared to 68% in the Q1 FY16.

Apple sold 13.08 million units of iPad in Q1 FY17, which was a decline of 19% y-o-y. Moreover, the segment’s revenues tumbled 22% a y-o-y basis to $5.53 billion in Q1 FY17. Mac unit sales improved 1% y-o-y to 5.37 million in Q1 FY17 from 5.31 million in Q1 FY16. Additionally, the segment’s revenues grew 7% y-o-y in Q1 FY17 to $7.24 billion.

In Q1 FY17, revenues from its Services segment surged 18% y-o-y to nearly $7.17 billion. However, in the reported quarter revenues from Other Products fell 8% y-o-y to over $4.02 billion.

Geographical Contribution

In Q1 FY16, Apple registered sales growth in all the geographical segments, except Greater China. Furthermore, The Company generated 64% of its quarterly sales revenue from international market.

In Q1 FY17, Apple’s sales in Americas, the largest market for the Company, generated revenues of approximately $31.97 billion, or 41% of net sales, compared to $29.33 billion, or 39% of net sales in Q1 FY16.

Apple’s revenues from the European region grew 3% y-o-y to $18.52 billion in Q1 FY17. The Company generated $5.77 billion of sales revenues from Japan in Q1 FY17, which was 20% above $4.79 billion recorded in the last year’s comparable quarter. Meanwhile, revenues from Asia/Pacific improved 8% y-o-y to $5.86 billion in Q1 FY17 from $5.45 million reported in Q1 FY16.

In the reported quarter, revenues from the Greater China region declined 12% y-o-y to $16.23 billion, primarily due to lower net sales of iPhone and the effect of weakness in foreign currencies relative to the US dollar.

Cash Flow & Balance Sheet

For the three months ended on December 31, 2016, Apple generated $27.06 billion in cash from operations compared to $27.46 billion at the end of quarter in the year ago same period. The Company had cash and cash equivalents balance of $16.37 billion as on December 31, 2016, compared to $20.48 billion, at the close of books on September 24, 2016.

Dividend and Share Repurchases

In its earnings press release, Apple’s Board of Directors declared a cash dividend of $0.57 per share of the common stock. The dividend is payable on February 16, 2017, to shareholder of record at the close of business on February 13, 2017.

During the reported quarter, Apple returned about $15 billion to its investor through dividends and share repurchases, bringing cumulative payments through its capital return program to over $200 billion.

Outlook

In its guidance for Q2 FY17, Apple expects revenue in the range of $51.5 billion and $53.5 billion. The Company anticipates gross margin for Q2 FY17 to be between 38% and 39%. The Company’s management forecasts operating expenses for Q2 FY17 to be between $6.5 billion and $6.6 billion.

Stock Performance

Apple’s share price finished yesterday’s trading session at $130.29, slightly advancing 0.94%. A total volume of 26.63 million shares exchanged hands. The stock has rallied 21.84% and 40.90% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have surged 12.49%. The stock is trading at a PE ratio of 15.60 and has a dividend yield of 1.75%.

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