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Apple’s forecasts have disappointed investors

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Apple’s forecasts have disappointed investors
November 05
09:00 2018

In the fourth quarter of the current fiscal year, Apple has increased its profits by more than 40%. The revenue has increased by 20%. Despite such indicators, the forecast for the current quarter, which is particularly profitable for the company due to holiday sales, has disappointed the investors.

Available figures are a record for the period from July to September. This is largely due to online services, including AppStore.

On Thursday, Apple’s shares slipped by 6.5%. If this pace remains the same, the company’s capitalization will be kept at a level above a trillion. Strengthening the trend will lead to the fall below this level.

Net profit for the period finished at the end of September was $ 14.1 billion (or $ 2.9 per share). Last year, these figures were equal to $ 10.7 billion and $ 2, respectively.

Revenue has increased by 20% to $ 62.9 billion from $ 52.6 billion. The growth rate of the indicator has been increasing for the eighth time in a row.

Apple CEO Tim Cook said that in the current fiscal year, the company had shipped its 2 billionth device on the iOS system.

Apple predicts an increase in revenue in the first fiscal quarter of the next fiscal year. The figure at somewhere between 89 and 93 billion US dollars is predicted. According to experts, profitability will be about 38%.

Morgan Stanley’s expert Katy Huberty calls the Apple’s forecast an important driver of the market sentiment.

IPhone sales have grown by almost 30% due to new models of the popular smartphones. Over the past quarter, the company sold 46.9 million smartphones, which turned out to be 600 thousand less than the market expectations. Despite this, the revenue from iPhones has grown by a third. This was due to the increase in the average price of devices (now this figure is $ 793).

Due to its services, Apple has received the revenue of about $ 10 billion. The revenue from AppStore and Apple Music has increased by 17%. But in these segments, experts expected larger figures too. Anyway, now online services are the second largest source of income for the company.

Revenue in China has risen to $ 11.4 billion. This slightly dispelled investors’ fears about the trade war and weakening of the development of the Chinese economy.

Apple stated that it would stop publishing the information about the number of devices sold in units. Many experts took this news as a desire to hide the real situation.

In 2018, the cost of Apple has soared by 30%. Dow Jones, meanwhile, has grown by more than 8%.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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