Wednesday’s Headlines: iPhone Sales Skyrocket
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Trip.com Group (TCOM) +2.5%
Gentex (GNTX) +2.3%
The Trade Desk (TTD) +1.5%
Nautilus (NLS) +1.5%
Moving Down ⬇️
Sea Limited (SE) -6.5%
FedEx (FDX) -5.0%
Roku Inc. (ROKU) -4.2%
Coupa Software (COUP) -4.0%
1. Apple (AAPL) blew its earnings report out of the water on Tuesday evening, announcing that every one of its major product lines grew more than 12% over the past year. The firm recorded earnings of $1.30 per share on revenue of $81.41 billion, up 36% year-over-year (YoY). Meanwhile, iPhone’s sales jumped 50%, which CEO Tim Cook attributed to more Android users moving to Apple, explaining that they saw double digit increases in switchers. Despite these impressive numbers, investors were not pleased to hear that the firm does not expect this hyper growth to continue in the September quarter due to semiconductor shortages, sending shares down in extended trading. Read the full press release here.
2. King of advertising, Alphabet (GOOG), also posted a knockout earnings release, recording ad sales growth of 69%. The Google parent posted earnings of $27.26 per share on total revenue of $61.88 billion, which both sailed past Wall Street’s estimates. A resurgence in retail marketing spend was the biggest contributor to Google’s advertising growth, which had been previously hurt by the pandemic. YouTube was another standout from the report, with revenue of $7 billion, up 83% YoY, which analysts noticed was very close to rival Netflix's (NFLX) own numbers. Just like Big Tech pal Apple, Google’s Chief Financial Officer, Ruth Porat, also said they expect “more muted tailwind to revenues in the third quarter.” Check out the full press release here.
3. Keeping up with the trend of Big Tech giants posting impressive results, Microsoft (MSFT) also exceeded expectations as it showed off the strength of its growing cloud empire. The Window’s maker reported earnings of $2.17 per share on revenues of $46.15 billion, up 21% YoY, while its AWS competitor, Azure, saw revenue jump 51%. However, the hyper growth that Microsoft’s Xbox experienced during the pandemic resulted in the 4% decline for the June-ended quarter being compared unfavorably against the 65% gain from the year-ago quarter. Microsoft CEO Satya Nadella boasted about the success of its new businesses, stating: “In new franchises we’ve built, including gaming, security, and LinkedIn, all of which surpassed $10 billion in annual revenue over the past three years.” See the full press release here.
Some more earnings from last night:
The return of Hollywood blockbusters helped IMAX’s earnings rebound from the effects of the pandemic, with revenues of $51 million jumping 475% YoY. Those comparisons may be dramatic given that cinemas were closed last summer, but the movie chain is still improving its financial performance as it only reported a net loss of $9.2 million for the quarter, a significant improvement from the $26 million it lost in the year-ago period. Read the full report here.
Thanks to rising sales of cold brews during the warmer months, Starbucks posted sales of $7.5 billion, a 78% increase YoY, which smashed Wall Street’s estimates. However, investors' sentiment was hurt by the caffeine supplier warning of a weaker recovery in China, its second-largest market, despite Starbucks raising its overall outlook for the full-year. See the full press release here.
The telemedicine company’s shares tumbled in after-hours trading yesterday after it posted a wider-than-expected net loss of $133.8 million, or $0.86 per share. In Teladoc's Q1 report, the company explained that it expected slow membership growth in 2021, but in Q2 it saw visits jump 28% YoY which should relieve some shareholders' concerns. Read the full press release here.
There are nine companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.