Apple stock (NASDAQ: AAPL) released 2017 third quarter earnings today. The earnings beat analysts' forecasts of $44.95 billion, reaching $45.4 billion, in the third quarter. Earnings per share were $1.67 against $1.57 expected. Meanwhile, in anticipation of the earnings, Apple stock had been on a steady rise. At the close of the markets, the stock traded at $150.05. AroniSmartInvest in Action has also consistently flagged Apple’s stock, in its “Best” or “Watch” segments (see AroniSmartInvest In Action™ here, here, and AroniSmartInvest in Action: Overview of a Few Stocks Selected for July-August 2017)
After the announcement, the stock jumped higher and is trading around $159.32, or 6% jump. The stock has gained 28% YTD, by the close of the markets. Fo the third quarter, Apple’s major fundamentals beat expectations: gross margin was 38.5%, better than the 38.2% expected by analysts and cash grew to $261 billion. Services revenues grew to $7.3 billion.
The only red spot is China, where the sales declined by 10% compared the prior year and by 25% compared to the second quarter.After the announcement, the stock jumped higher and is trading around $159.32, or 6% jump. The stock has gained 28% YTD, by the close of the markets. Fo the third quarter, Apple’s major fundamentals beat expectations: gross margin was 38.5%, better than the 38.2% expected by analysts and cash grew to $261 billion. Services revenues grew to $7.3 billion. The only red spot is China, where the sales declined by 10% compared the prior year and by 25% compared to the second quarter.
For the third quarter, Apple sold 11.4 million iPads , up 15%, and 4.3 million Macs, up 1% from the prior year. iPhone 7 sales for the 3rd quarter hit 41 million units, below the expectations of 41.1 million units.
With such outstanding results, the answer seemingly most anticipated is around the release of the next generation of iPhone. The next iPhone, that some have persistently called iPhone 8, will be launched to mark the 10th anniversary of Apple's smartphone.According to earlier news releases, the new iPhone will be a major innovation and upgrade on the earlier iPhone 8.
Apple has highlighted that in order to maintain the momentum it needs to do the following:.
- continue to leverage its Services offerings, to maintain or fuel revenues momentum. Apple CEO Tim Cook hinted to that in the company’s earnings release that, “we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue.”
- Reverse the downward trend in China.
- Find a way to take a lead in new technologies and artificial intelligence, including self driving cars, IoT, smart home speakers or HomePod, and wearables,
