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Apple Q3 Results Top Estimates; Declares Dividend

Story Highlights

Apple stock price rose in extended trading hours after the company delivered better-than-expected Q3 2022 results. This indicates strong business execution amid a challenging environment.

Apple (AAPL) delivered better-than-expected results for the third quarter. The tech giant posted revenue and earnings that beat analysts’ estimates. The board of directors also declared a cash dividend.

AAPL shares closed 0.36% higher at $157.35. It rose more than 2% in extended trading hours following the Q3 2022 results.

Revenue & Earnings Beat Estimates

Apple delivered record June quarter revenue of $82.96 billion, up 2% from the year-ago quarter. The figure marginally beat the consensus estimate of $82.59 billion. The increase is attributed to strong iPhone and Services sales.  

Product sales declined marginally to $63.36 billion from $63.95 billion in the year-ago quarter. On the other hand, Services sales increased to $19.60 billion from $17.49 billion in the year-ago quarter. In addition, Apple benefited from an active installed base of devices that reached all-time highs for all major product categories.

Meanwhile, net income declined to $19.44 billion or $1.20 diluted earnings per share (EPS), compared to $21.74 billion or $1.30 a share in the year-ago quarter. However, the Q3 EPS exceeded analysts’ estimates of $1.16 a share.

Performance across Products’ Segments

iPhones saw an uptick in revenue while other product segments registered a decline.

iPhone sales increased to $40.67 billion compared to $39.57 billion in the year-ago quarter. Mac and iPad sales dropped to $7.38 billion and $7.22 billion from $8.24 billion and $7.37 billion, respectively, in the year-ago quarter. Wearable, Home, and Accessories sales also declined to $8.08 billion from $8.78 billion in the year-ago quarter.

Apple Declares a Cash Dividend

The board of directors has approved a cash dividend of $0.23 per share. The dividend is to be paid on August 11, 2022, to shareholders of record as of August 8, 2022.

During the quarter, Apple returned $28 billion to shareholders.

Management’s Commentary

According to Chief Executive Officer (CEO) Tim Cook, Q3 results affirm constant efforts to innovate and advance new possibilities. He said, “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”

Wall Street is Cautiously Bullish on Apple

The Street is optimistic about Apple stock, with a Moderate Buy consensus rating, based on 22 Buys, six Holds, and one Sell. The average Apple price target of $179.53 implies 14.1% upside potential from current levels.

Encouraging Website Traffic Numbers

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Apple’s performance this quarter.

According to the tool, the Apple website recorded a 17.21% monthly increase in global visits to 479.9 million in June 2022 compared to the previous month of May. Additionally, year-to-date, Apple website traffic increased by 58.61%, compared to the same period last year.

The spike in website visits indicated that Apple could benefit from a rebound in demand, and Q3 results revealed the same.

Learn how Website Traffic can help you research your favorite stocks.

Key Takeaway for Investors

Apple’s Q3 results indicate that the company is firing from all angles despite facing a challenging operating environment hurt by soaring inflation levels. The cash dividend affirms its commitment to returning value to shareholders.

Read the full Disclosure.

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