Bill Cara

Apple (AAPL) Q1 FY2024 earnings (news release Feb 1)

A summary of Apple’s fiscal 2024 Q1 financial results:

  1. Quarterly revenue: $119.6 billion, up 2% year over year.
  2. Quarterly earnings per diluted share: $2.18, up 16% year over year. Consensus estimate was $2.10.
  3. Revenue growth: Fueled by iPhone sales and an all-time revenue record in Services.
  4. The installed base of active devices: Surpassed 2.2 billion, reaching an all-time high across all products and geographic segments.
  5. Apple Vision Pro: Customers will begin to experience this new product.
  6. EPS record: The December quarter’s top-line performance and margin expansion drove an all-time record EPS of $2.18, up 16% from last year.
  7. Operating cash flow: Generated nearly $40 billion during the quarter.
  8. Shareholder returns: Returned almost $27 billion to shareholders.
  9. Cash dividend: The board of directors declared a cash dividend of $0.24 per share of the Company’s common stock, payable on February 15, 2024.
  10. Fiscal calendar: The fiscal 2024 Q1 had 13 weeks, while the fiscal 2023 Q1 had 14 weeks.
  11. Plans: Apple continues to make significant investments across its business to support its long-term growth plans.

Here’s an analysis of Apple’s Financial Statements:

Condensed Consolidated Statements of Operations:

  • Net Sales: Increased from $117.154 billion in Dec 2022 to $119.575 billion in Dec 2023.
  • Cost of Sales: Decreased from $66.822 billion in Dec 2022 to $64.720 billion in Dec 2023.
  • Gross Margin: Increased from $50.332 billion in Dec 2022 to $54.855 billion in Dec 2023.
  • Operating Expenses: Slightly increased from $14.316 billion in Dec 2022 to $14.482 billion in Dec 2023.
  • Operating Income: Increased from $36.016 billion in Dec 2022 to $40.373 billion in Dec 2023.
  • Net Income: Increased from $29.998 billion in Dec 2022 to $33.916 billion in Dec 2023.
  • Earnings Per Share: Increased from $1.88 (diluted) in Dec 2022 to $2.18 in Dec 2023.

Net Sales by Reportable Segment:

  • Sales increased in all regions except Greater China, where it decreased from $23.905 billion in Dec 2022 to $20.819 billion in Dec 2023.

Net Sales by Category:

  • iPhone sales increased from $65.775 billion in Dec 2022 to $69.702 billion in Dec 2023.
  • iPad sales decreased from $9.396 billion in Dec 2022 to $7.023 billion in Dec 2023.
  • Wearables, Home and Accessories sales decreased from $13.482 billion in Dec 2022 to $11.953 billion in Dec 2023.

Condensed Consolidated Balance Sheets:

  • Total Assets: Slightly increased from $352.583 billion in Sep 2023 to $353.514 billion in Dec 2023.
  • Total Liabilities: Decreased from $290.437 billion in Sep 2023 to $279.414 billion in Dec 2023.
  • Shareholders’ Equity: Increased from $62.146 billion in Sep 2023 to $74.100 billion in Dec 2023. This is mainly due to increased common stock and additional paid-in capital and a shift from an accumulated deficit to retained earnings.

Condensed Consolidated Statements of Cash Flow:

Operating Activities:

  • Net income: Increased from $29.998 billion in Dec 2022 to $33.916 billion in Dec 2023.
  • Cash generated by operating activities: Increased from $34.005 billion in Dec 2022 to $39.895 billion in Dec 2023.

Investing Activities:

  • Purchases of marketable securities: Increased from $5.153 billion in Dec 2022 to $9.780 billion in Dec 2023.
  • Proceeds from maturities of marketable securities: Increased from $7.127 billion in Dec 2022 to $13.046 billion in Dec 2023.
  • Cash generated by/(used in) investing activities: Changed from a usage of $1.445 billion in Dec 2022 to a generation of $1.927 billion in Dec 2023.

Financing Activities:

  • Repurchases of common stock: Slightly increased from $19.475 billion in Dec 2022 to $20.139 billion in Dec 2023.
  • Cash used in financing activities: Decreased from $35.563 billion in Dec 2022 to $30.585 billion in Dec 2023.

Cash and Cash Equivalents:

  • Increase/(Decrease) in cash, cash equivalents and restricted cash: Changed from a decrease of $3.003 billion in Dec 2022 to an increase of $11.237 billion in Dec 2023.
  • Cash, cash equivalents and restricted cash, ending balances: Increased from $21.974 billion in Dec 2022 to $41.974 billion in Dec 2023.

Supplemental Cash Flow Disclosure:

  • Cash paid for income taxes, net: Increased from $828 million in Dec 2022 to $7.255 billion in Dec 2023.