Financial Report of Apple (AAPL) for the 3rd Quarter of 2023
Apple’s (AAPL) report for the third quarter of 2023 showed some interesting results. The company’s revenue amounted to $81.8 billion, a decrease of 1.4% compared to the previous year. Operating profit was $22.9 billion, also representing a decrease of 0.3%. However, net profit increased by 2.2% to $19.8 billion. EPS for the third quarter of 2023 was $1.26, indicating a growth of 5%.
Table of Apple’s (AAPL) report results for the third quarter of 2023:
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | $81.8B | -1.4% |
| Operating Profit | $22.9B | -0.3% |
| Net Profit | $19.8B | +2.2% |
| EPS | $1.26 | +5% |
Apple (AAPL) exceeded EPS expectations and reported record revenue growth in the services segment. However, sales of iPhones, Macs, and iPads declined due to reduced consumer demand. The company continues to actively engage in share buybacks and has an impeccable cash flow. Despite the lack of future revenue forecasts, Apple’s stock is down 2% in pre-market trading.
Although revenue and operating profit decreased, Apple surpassed expectations in terms of net profit and earned more than anticipated. It is important to note the record revenue growth in the services segment, which has over 1 billion paid subscriptions. This is a positive signal for the company.
However, it is worth noting that consumers are buying fewer Apple devices, which affected sales. iPhone sales decreased by 2.5%, Mac sales by 7.3%, and iPad sales dropped by 19.8%. This raises concerns about the company’s future performance.
Nevertheless, Apple continues to have a stable cash flow and actively repurchases its shares. Over the past 9 months, $56.5 billion worth of shares have been bought back. This can be a positive factor for investors, considering the company’s stable financial indicators.
However, Apple prudently does not provide revenue forecasts starting from 2020. This may raise doubts among investors about the company’s prospects in the near future. This could also be a reason for the 2% decline in pre-market stocks.
Overall, Apple’s report for the third quarter of 2023 has both positive and negative aspects. Despite the decline in revenue and operating profit, the company exceeded expectations in terms of net profit and demonstrated record growth in the services segment. However, reduced consumer demand and the lack of future revenue forecasts raise certain doubts. Investors are advised to carefully assess the current situation and make a decision on purchasing Apple stocks based on their strategy and risk profile. However, judging by the current results and forecasts for the fourth quarter, investors do not expect significant growth, and the company’s stocks are down 2% in pre-market trading.
