Apple’s Fiscal 1Q18 Results and Analysts’ Estimates



Revenue of $88.3 billion

Apple (AAPL) announced its fiscal 1Q18 results on February 1, 2018, reporting revenue of $88.3 billion, a rise of 13% YoY (year-over-year). The quarter ended in December 2017. Apple’s non-GAAP (generally accepted accounting principles) EPS (earnings per share) was $3.89, a rise of 16% YoY. Although Apple reported record revenue in 1Q18, it was below the average analyst estimate. Its EPS 1Q18 was the highest reported earnings ever, beating analysts’ estimate.

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International sales accounted for 65% of Apple’s revenue in fiscal 1Q18. During the earnings call, Apple’s chief executive officer Tim Cook stated, “We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.”

At the end of January 2018, Apple’s total installed base of devices stood at 1.3 billion, an increase of 30% over the last two years.

What did analysts expect from Apple in fiscal 1Q18?

Analysts expected Apple to post fiscal 1Q18 revenue of $86.5 billion with a low estimate of $84 billion and a high estimate of $89.8 billion. Its average EPS estimate was $3.78 with a high estimate of $3.94 and a low estimate of $3.41.

Apple shares fell 4.3% on February 2, 2018, after its fiscal 1Q18 results. The stock has fallen more than 5% since the start of 2018. Comparatively, the S&P 500 (SPY) and the PowerShares QQQ ETF (QQQ) have generated returns of 3.2% and 5.7%, respectively, in 2018.


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