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Apple’s 4Q15 Earnings Beat Analysts’ Estimates … Again



Apple beats estimates for fifth consecutive quarter

As expected, Apple (AAPL) beat consensus analysts’ estimates for revenues and EPS (earnings per share) when it announced its fiscal 4Q15 earnings on October 27, 2015. Apple’s revenues of $51.5 billion were better than analysts’ estimates of $51.1 billion. Its EPS of $1.96 was also better than the $1.88 that analysts were expecting. This was the fifth consecutive quarter in which Apple beat analysts’ estimates.

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Apple’s EPS grew from $1.42 in fiscal 4Q14 to $1.96 in fiscal 4Q15, mainly due to the aggressive share buyback program it’s been following. Apple’s results now mirror the trend that we’re seeing in the large-cap technology sector. Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) earnings results have all beaten consensus estimates this time, which have resulted in their stocks increasing 5%–10% after the earnings for these companies were announced.

Revenues from Greater China almost doubled over the last year

Apple’s overall revenues grew 22% on a year-over-year (or YoY) basis mainly due to the successful September launch of the iPhone 6S and iPhone 6S Plus. These new iPhones had a very positive reception from users. Apple sold 13 million iPhones in the first weekend of their release. Comparatively, it sold about 10 million iPhones in 2014.

The result of this success meant that iPhone’s revenue contribution to Apple continues to increase. As the above graph shows, iPhone accounted for 56% of Apple’s overall revenues in fiscal 4Q14, which increased to 63% in fiscal 4Q15. China continues to drive this growth for Apple. Revenues from Greater China, which includes China, Hong Kong, and Taiwan (EWT), grew 99% YoY to $12.5 billion.


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