Here's what to expect from Amazon, Apple earnings

Apple revenue fell short of Wall Street expectations in its fiscal fourth quarter on Thursday, which Apple CEO Tim Cook attributed to larger-than-expected supply constraints on iPhones, iPads, and Macs.

Apple fell over 4% at one point in extended trading.

“We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” Cook told CNBC’s Josh Lipton. “The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia.”

However, Apple’s overall revenue was still up 29% and each of its product categories grew on an annual basis.

Here’s how Apple did versus Refinitiv consensus estimates:

EPS: $1.24 vs. $1.24 estimated
Revenue: $83.36 billion vs. $84.85 billion estimated, up 29% year-over-year
iPhone revenue: $38.87 billion vs. $41.51 billion estimated, up 47% year-over-year
Services revenue: $18.28 billion vs. $17.64 billion estimated, up 25.6% year-over-year
Other Products revenue: $8.79 billion vs. $9.33 billion estimated, up 11.5% year-over-year
Mac revenue: $9.18 billion vs. $9.23 billion estimated, up 1.6% year-over-year
iPad revenue: $8.25 billion vs. $7.23 billion estimated, up 21.4% year-over-year
Gross margin: 42.2% vs. 42.0% estimated
iPhone sales were up 47% year-over-year, but still came in under Wall Street estimates.

Apple hasn’t provided official guidance since the start of the pandemic, but Cook said Apple expects “solid year-over-year revenue growth” in the December quarter despite the fact Cook said Apple will face worse supply constraints in the current quarter.

“So we’ve finished about a month of the quarter. The Covid related manufacturing disruptions have improved greatly. The chip shortages linger on,” Cook said.

Cook said that the supply issues were with chips on “legacy nodes,” or older chips, instead of the technologically advanced processors at the heart of Apple’s devices.

The expectation of year-over-year sales growth suggests that Apple sees significantly more demand for its new iPhone 13 models than it can supply. Apple’s fourth quarter only included a few days of iPhone 13 sales as it ended on Sept. 25.

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[jeffkconnell]

What I like about Josh is that he doesn't pretend to know what he doesn't know which is what the future will hold.

[cya]

big tech, own it, dont trade it. if you down own it it suddenly moves and you are too late. dont try to time the market, just hold these kind of stocks and looking back you can enjoy the progress. these big tech stocks have insanely good management. just trust them.

[mrpmj]

No worries...Amazon Black Friday next month will be a blockbuster to boost the stock.

[hintzod]

Apple earnings will be huge. Carriers are spending big on promotions. Only concern is supply chain.

[willhaslem]

3:48 He got a pic of Biggie in the background. lol

[liarzdice]

Long term I just hold QQQ (QQQM lower ER) and have heavy exposure to the FAANGS.

[joevella]

The bulls look nervous the traders look comfortable

[jameslucas]

Despite the economic crisis, this is a Still a good time to invest in Gold and Crypto

[Username]

Apple's earnings will be great and then drop to $130s because of it.

[malongfan]

How could you go wrong investing in the #1 Tech company in the World ? Apple will Triple in the next 5 to 7 years.

[karome]

I wish Apple would go back to doing ipods or something more creative. I got bored years ago with apple with the iphone after iphone. I used to like the ipods that came out back in 2006-2011. They had shuffle clip ons and small ipods with screens and just really creative things.

[pieror.pinatelli]

what to expect? amazon is going to mars!

[macdee]

Najarian, the guy who gets terrified when stock goes down, or jumps out of the ship first, you might want to quit. Are you an avid Trump supporter? He gets so excited like a little kid in a candy store when the stocks go up.