Apple Rallies on Earnings Beat
Shares in US tech titan Apple are trading higher today on the back of a solid set of Q2 earnings yesterday. Apple reported earnings per share of $1.20, just above the $1.16 Wall Street was looking for. Revenues were also higher at $82.95 billion versus $82.75 billion forecast. Along with solid results for the last quarter, Apple CEO Tim Cook also hared positive forecast for the coming quarter, saying: “In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness.”
Looking at the breakdown of the company’s data, services revenue growth was the biggest driver of the increase in Apple’s top line, rising 12% on the year. Mac revenues, however, were the biggest drag, falling 10% on the year.
Speaking with CNBC, CEO Tim Cook commented on inflation (something we’ve been hearing a lot about this earnings season, saying: “We do see inflation in our cost structure. We see it in things like logistics and wages and certain silicon components and we’re still hiring, but we’re doing it on a deliberate basis.”
Apple also noted how the recent lockdowns in China had impacted the company. Revenues in Greater China (which include Hong Kong and Taiwan) were seen lower by 1% on the year.
Technical Views
Apple
The recovery rally off the 133.11 lows has seen Apple shares trading higher within a net bullish channel over recent months. Price recently broke above the 151.36 level and, while above there, the focus is on a continuation higher towards the 167.45 level, in line with bullish MACD and RSI readings.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.