Apple Plunges After First Revenue Miss In 4 Years, Warns Of $6 Billion In “Supply Constraints”

Apple Plunges After First Revenue Miss In 4 Years, Warns Of $6 Billion In “Supply Constraints”

Moments after a very ugly quarter from Amazon, which missed on the top and bottom line and guided far lower than consensus, investors held on to hope that at least the world’s largest company, Apple, would somehow pull a rabbit out of its magic hat of tricks and report solid earnings pulling the Nasdaq out of its after hours slump. Alas, it did not and after reporting a miss on the top line (and matching the EPS), AAPL is also tumbling after hours and dragging Nasdaq futures down with it.

Here are the ugly details from the just concluded Q4:

Rev. $83.36B, missing est. $84.69B, this was the first revenue miss since 2017!
EPS $1.24, matching est. $1.24

Some more headlines:

Q4 iPhone Revenue $38.87B, missing Est. $41.60B
Q4 iPad Revenue $8.25B, beating Est. $7.16B
Q4 Mac Revenue $9.18B, missing Est. $9.31B, which nonetheless was an all time high
Q4 Products Rev. $65.08B, missing Est. $68.72B
Q4 Service Rev. $18.28B, missing Est. $17.57B, also an all time high
Q4 Wearables, Home & Accessories $8.79B, missing Est. $9.28B

Earnings snapshot:

Commenting on the quarter, Apple Chief Financial Officer Luca Maestri said that “we fully expect to set a new December quarter record for revenue” but cautioned that “we also expect the supply constraints will be greater than the $6 billion….We expect most of our product categories to be constrained during the December quarter.

As noted above, AAPL unexpectedly missed on iPhone revenues, which came in at just $38.87B, missing estimates of $41.60B, as did Mac revenues of $9.18BN, below the estimate of $9.31BN, if still an all time high. Apple’s wearables and accessories segment also disappointed generating just $8.79BN in revenue, below the $9.28BN expected. These misses were somewhat offset by $8.25BN in iPad sales which came in above the $7.16BN consensus.

The big miss in product sales was offset by yet another record quarter for AAPL’s Services division which rose to $18.28BN, beating expectations of $17.57BN…

… and up 25.6% from the $14.55 a year ago, a slight drop sequentially from the 26.6% increase last quarter.

The geographic breakdown was solid even though it was largely due to the base effect from last year’s big drop in sales. It was also a notable slowdown from the near triple digit surge in Great China and “rest of Asia/PAC” sales:

And in dollar terms:

The reaction to the shocking revenue miss was even more painful than Amazon’s, with the stock tumbling some 5% after hours.

Developing

Tyler Durden
Thu, 10/28/2021 – 16:41

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