Apple Earnings: Here’s Why Investors Like These Results

Apple Inc. (NASDAQ:AAPL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.53%.

Apple Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 19.85% to $7.47 in the quarter versus EPS of $9.32 in the year-earlier quarter.

Revenue: Rose 0.86% to $35.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apple Inc. reported adjusted EPS income of $7.47 per share. By that measure, the company beat the mean analyst estimate of $7.32. It beat the average revenue estimate of $35.01 billion.

Quoting Management: “We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

Key Stats (on next page)…

Revenue decreased 18.99% from $43.6 billion in the previous quarter. EPS increased 25.97% from $10.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $8.57 to a profit $7.96. For the current year, the average estimate has moved down from a profit of $40.67 to a profit of $39.32 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More from The Cheat Sheet