Apple shares are flowing despite another record quarter

Apple shares fell after the company made a lot of money.
Photo: Yahoo Finance

Apple shares are falling in trading after business hours, despite the company’s announcement of another record quarter. Problem? Wall Street expected it to do much more.

Apple shares fell 5% on Thursday after the company failed to exceed Wall Street earnings expectations. This is the first time that Apple has missed analysts’ projections since 2016.

This despite the fact that the company earns – again – a lot of money. The company reported record revenue of $ 83.4 billion, 29% more than a year earlier, but below analysts ’consensus of $ 84.85 billion, according to Yahoo Finance.

Overall, revenues in the fourth fiscal quarter grew by a not-so-bad 29% year-on-year. Apple recorded growth over the previous year in all product categories, but especially in iPhone revenue, which grew by a staggering 47% over the previous year. However, even this is not in line with analysts’ projections.

Apple blamed supply chain problems for the shortcoming. CEO Tim Cook said the lack of supply cost the company $ 6 billion.

“We had very good performance despite supply constraints than expected, which we estimate to be around $ 6 billion,” Cook said. CNBC. “Supply constraints have been driven by the much-talked-about lack of chips throughout the industry and the COVID-related production disruptions in Southeast Asia.”

For the next quarter, Cook said Apple expects “strong revenue growth over the previous year,” although the company will face even bigger supply restrictions.

Chief Financial Officer Luca Maestri reiterated Cook’s thesis at a conference call with analysts on Thursday. Maestri said Apple expects supply chain problems to have an even greater financial impact in the coming quarter, but that Apple still expects “very solid revenue growth year on year.”

“The demand is very strong,” Cook said in the same call.

Apple has so far seemed immune to supply restrictions. Press reports state that key suppliers, such as its Taiwanese chip partner TSMC, have given preference to Apple, mitigating the impact of any shortage.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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