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What to Expect from Apple's Q1 2024 Earnings Report

Apple CEO Tim Cook

Apple's first financial quarterly results will be published by the company on February 1. Here's what happened in the holiday quarter and what to expect from the iPhone maker as it tells investors.

Apple confirmed on January 8 that it will host its holiday quarter earnings call on Thursday, February 1, 2024. The call will take place at 5:00 pm PT. Eastern, will feature CEO Tim Cook and CFO Luca Maestri explaining some details to investors and analysts about Apple's first-quarter 2024 results, which are scheduled to be released around 4:30 p.m. PT. THIS.

Last Quarter: Fourth Quarter Details

FY 2023 Fourth Quarter Results turned out to be a mixed bag for Apple, as the company's revenue fell year-on-year for the fourth time in a row in four straight quarters. However, it still beat Wall Street's expectations.

Apple's revenue for the quarter was $89.5 billion, down from the $90.1 billion it reported in the fourth quarter of 2022. Apple also announced earnings per share of $1.46.

During this period, iPhone revenue grew from $42.6 billion to $43.8 billion YoY. This offset a decline in iPad revenue from $7.17 billion in the fourth quarter of 2022 to $6.43 billion in the fourth quarter of 2023.

Apple's quarterly revenue and net income as of Q4 2023

Mac revenue was down significantly from $11.5 billion in Q4 2022. amounting to just $7.61 billion in the fourth quarter of 2023. Wearables, home and accessories also declined, but only by $9.32 billion versus $9.65 billion.

Services continued to be a robust sector, growing from $19.19 billion year over year to $22.31 billion.

Cook described the results as September's quarterly iPhone revenue record and record revenue record from services throughout history. Maestri added that Apple's active installed base of devices reached new record levels across all products and geographic segments.

In the first quarter of 2024, Apple warned of a potential slowdown in wearable device sales as the ITC sales ban caused problems for the Apple Watch in the US. It also raised hopes that Mac sales would grow.

In the earnings call, analysts were quick to say that Apple had mixed results that were in line with consensus, but they were also quick to jump into speculation about its first-quarter results.

Quarter year ago: 1st quarter 2023

For four quarters through the first quarter of 2024, in the first quarter of 2023, Apple's revenue was $117.15 billion. This was a decline from the prior-year quarter, which was Apple's record quarter with $123.9 billion in revenue and also marked Apple's first year-over-year quarterly revenue decline since 2019.

For the period, Apple's earnings per share were $1.88, down from $210 a year earlier.

As usual, the iPhone earned the most in the quarter at $65.78 billion, although that was also down from $71.6 billion in the same quarter a year ago. Part of the reason for the shortage was problems at the Zhengzhou plant.

iPad revenue grew from $8.4 billion in the first quarter of 2022 to $9.4 billion in the first quarter of 2023, while services revenue also grew from $19.5 billion to $20.77 billion dollars.

Mac revenue fell year over year from $10.8 billion to $7.74 billion, and revenue from wearables, home products and accessories fell from $14.7 billion to $13.48 billion.

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What happened in the first quarter of 2024

First quarter results : Historically Apple's biggest source of revenue for the entire year, and there are several good reasons for this.

The main one is that this is the quarter when people buy Apple's iPhone. Although iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max went on sale on September 22, the end of the fourth quarter of 2023 and the first quarter of 2024 will be the first full quarter to record sales and shipments of these models.

iPhone 15 Pro in titanium blue

Along with the iPhone, Apple also introduced the Apple Watch Series 9 and Apple Watch Ultra 2. Despite the ITC ban caused limited problems with sales in the US, the ban does not affect sales in other countries around the world.

At the same time, Apple also updated its AirPods Pro 2 with a USB-C case.

During the quarter, Apple introduced the new Apple Pencil with USB-C and held a “Scary Fast” event, where it introduced new versions of the 24-inch iMac, 14-inch MacBook Pro equipped with M3, and 16-inch MacBook Pro.

Bulk sales of Apple's product catalog are also virtually guaranteed as they occur during the holiday sales period.

The excitement over Apple's Vision Pro may have helped sales, but since it won't be released until February 2 and in relatively limited quantities compared to the iPhone release, it won't make as much of a splash. ahead of second quarter results.

What Wall Street thinks

Figures taken from Yahoo Finance dated 27 January Based on 22 analyst opinions, Apple's average earnings are $108.37 billion, with a high estimate of $113.99 billion and a low estimate of $108.37 billion.

Earnings per share, according to 26 analysts, could reach $1.93, with high and low estimates of $1.98 and $1.88.

CNN Money presented data from its own survey of analysts. As of January 27, consensus sales estimates were $126.1 billion, with a high of $131.6 billion and a low of $114.2 billion.

Earnings per share in this case are expected to be 2. $15 with highs and lows of $2.51 and $1.72.

On Marketwatch on January 27, analysts forecast average earnings per share of $2.10, with a high estimate of $2.17 and a low of $2.02.

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