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Apple Q1 2024 Revenue and Earnings Beat Estimates

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

  • Apple’s Q1 2024 revenue and earnings beat estimates.
  • EPS is up 16% to a new all-time high of $2.18 per diluted share.
  • Sales in China disappointed – dropping 13%.

Last Thursday Apple announced financial results for its fiscal first quarter of 2024, which ended on the 30 th of December 2023. Revenue and earnings exceeded estimates, fuelled by record services revenue and almost 6% iPhone sales growth. Apple posted quarterly revenue of $119.6 billion, up 2% year over year, and an all-time record quarterly earnings per diluted share (EPS) of $2.18, up 16% year over year. The company also declared a cash dividend of $0.24 per share.

Apple’s services business saw significant growth of 11% rising to $23.12 billion in sales. The company’s wearables segment, which includes AirPods and Apple Watch sales, is still struggling and has declined 11% year over year to $11.95 billion, as weak demand persisted. Investors are becoming increasingly concerned that the same fate may await Apple’s $3,499 AR/AV headset, Apple Vision Pro.

The company reported 2% sales growth in the December quarter, reversing the trend of four straight quarters with annual revenue declines. Gross margin continued to rise and came at 45.9%, while net income was $33.92 billion, up 13% from the previous corresponding period.

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Source: Company data as of 1 st of February 2024

Amid investors euphoria surrounding Meta and Amazon, Apple found itself on a rocky ground, after the company sales in its third largest market – China fell 13% for the quarter. Sales in China declined to $20.82 billion, falling short of analyst estimates of $23.53 billion, according to data from LSEG. China was a major growth driver for Apple, but fierce completion from Huawei and Xiaomi, and changing geo-politics are weighing. Investors’ concerns are mounting that the situation may not improve in 2024 either.

Despite the disappointing sales in China, Apple’s overall performance was robust, exceeding market expectations, with sales of iPhones reaching $69.70 billion.

A graph of stock market

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Source: TradingView

Apple’s share price rose 54% in 2024 and is almost flat YTD, marking the least “magnificent” performance after Tesla from the group of seven. The share price did not behave as investors would have liked and traded in a wide range between $165.67 and $199.62 over the past six months. This led to Microsoft to now dethrone Apple as the most valuable stock, with Microsoft reaching a market cap of $3.01 trillion vs. $2.90 trillion for Apple.

Despite the latest stagnation of the share price, the weekly chart suggests that better days might be ahead. The weekly Relative Strength Index (RSI) is firmly in the bull market range, suggesting that higher price levels are feasible over the medium-term. Once key resistance of $199.62 is broken, a strong dynamic rally towards $230.00 – $235.00 is likely to unfold.

As we look into the rest of the year, there are plenty of reason to be bullish about Apple’s growth prospects. The company has the world’s most valuable technology platform with over 1.2 billion users.

Despite the weaker sales in China, Apple’s long-term outlook remains positive given its technology leadership and sticky user base. Upcoming developments in generative AI, accelerating service growth, and new product launches such as Vision Pro are likely to sustain Apple’s growth.

Active traders looking to gain magnified exposure to Apple may consider Leverage Shares +3x Long Apple and -3x Short Apple ETPs.


Footnotes:
  1. Apple, Investor Relations

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Violeta Todorova

Senior Research

Violeta è entrata a far parte di Leverage Shares nel settembre 2022. È responsabile dello svolgimento di analisi tecniche e ricerche macroeconomiche ed azionarie, fornendo pregiate informazioni per aiutare a definire le strategie di investimento per i clienti.

Prima di cominciare con LS, Violeta ha lavorato presso diverse società di investimento di alto profilo in Australia, come Tollhurst e Morgans Financial, dove ha trascorso gli ultimi 12 anni della sua carriera.

Violeta è un tecnico di mercato certificato dall’Australian Technical Analysts Association e ha conseguito un diploma post-laurea in finanza applicata e investimenti presso Kaplan Professional (FINSIA), Australia, dove è stata docente per diversi anni.

Julian Manoilov

Marketing Lead

Julian è entrato a far parte di Leverage Shares nel 2018 come parte della prima espansione della società in Europa orientale. È responsabile della progettazione di strategie di marketing e della promozione della notorietà del marchio.

Oktay Kavrak

Head of Communications and Strategy

Oktay è entrato a far parte di Leverage Shares alla fine del 2019. È responsabile della crescita aziendale, mantenendo relazioni chiave e sviluppando attività di vendita nei mercati di lingua inglese.

È entrato in LS da UniCredit, dove è stato responsabile delle relazioni aziendali per le multinazionali. La sua precedente esperienza è in finanza aziendale e amministrazione di fondi in società come IBM Bulgaria e DeGiro / FundShare.

Oktay ha conseguito una laurea in Finanza e contabilità ed un certificato post-laurea in Imprenditoria presso il Babson College. Ha ottenuto anche la certificazione CFA.

Sandeep Rao

Research
Sandeep è entrato a far parte di Leverage Shares nel settembre 2020. È responsabile della ricerca sulle linee di prodotto esistenti e nuove, su asset class e strategie, con particolare riguardo all’analisi degli eventi attuali ed i loro sviluppi. Sandeep ha una lunga esperienza nei mercati finanziari. Iniziata in un hedge fund di Chicago come ingegnere finanziario, la sua carriera è proseguita in numerose società ed organizzazioni, nel corso di 8 anni – da Barclays (Capital’s Prime Services Division) al più recente Index Research Team di Nasdaq. Sandeep detiene un M.S. in Finanza ed un MBA all’Illinois Institute of Technology di Chicago.

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