It seems that a lot of people are talking about $aapl earnings whispers lately, but what does it mean? It is basically a way to try and predict what the stock will do once the earnings report is out. Generally, if the whisper is correct, it's a good idea to buy a stock before the release because the price will move a lot more than if you wait until after the release.
The price movements of $AAPL earnings are a subject of interest to many investors. This is because it is one of the most valuable companies in the world, and the stock is trading at a premium based on its intangibles. However, the company has been teasing its investors with low-ball guidance, and a close beat on its third quarter earnings resulted in some cautiousness on the part of the management team. The upcoming Q4 guidance is sure to raise questions about its future direction. But in the short term, the stock will continue to rise based on expectations.
The most important factor is that it is not always a slam dunk. For instance, Apple's whisper-worthy Q2 results were a bit of a snoozefest, and it was only when Mac sales exploded 28% in Asia-Pacific that Apple's earnings actually tipped the scales. In the end, the company did manage to beat estimates by a penny, and its stock has been steadily rising since. While the stock hasn't recouped its losses, it has still managed to add 14.2% to its total value in the thirty days following its second quarter report. Despite the short-term dip in the share price, it's possible that the stock will reach a venerable $580 in the days ahead.
It should also be noted that the biggest price mover is not a single event, but a series of events. For example, Apple's iPhone and iPad sales were well above forecasts, and its net profit was a hefty $1.6 billion. In the past, Apple has been notorious for not telling investors everything they want to hear, so it's no surprise that investors were sceptical about its fourth quarter guidance. The good news is that Apple is taking steps to ensure that its guidance will remain as unbiased as possible. It's also looking to boost its share buyback program by as much as 50% in the near term. And, if it can pull off the aforementioned o-m-m-m-m, the price of the stock could go up a few notches in the coming months.
The best way to determine whether Apple's post-earnings moves will be positive or negative is to consider the ten-day average. While the numbers are skewed by Apple's tumultuous quarter, the averages should improve after a few weeks.
Q2 2022 results
Apple released financial results for the second quarter of its fiscal year 2022 on April 28. The company posted revenues of $97.3 billion and net quarterly profit of $25.0 billion. This is the highest ever revenue and earnings per share in the company's history. It also set all-time quarterly records for the Mac, iPhone, and Wearables product lines. The company increased its dividend to $0.23 a share and authorized an increase of $90 billion to its share repurchase program.
The Mac and Services categories had good growth, although the iPad line was down 2% year-over-year. The iPad line was significantly supply constrained and a big reason for the revenue drop. The M1-powered MacBook Pro was particularly popular.
In fact, half of all Mac buyers were new to the product, which shows that the company's innovation continues. The Mac and iPad product lines were helped by the pandemic-induced spending that drove strong demand in the first three months of the year. The Mac and Services product lines should continue to grow due to the remote working trend, according to analysts.
Apple's Wearables segment increased slightly, making $19.8 billion, but the iPhone line was down slightly. However, the company's Mac division saw a strong increase, with revenues hitting $10.4 billion, a record high for the company's quarterly revenues. This quarter's Mac segment was up 15% over last year, but supply constraints kept the company from reaching the $7.8 billion in annual Mac sales that analysts had predicted.
While the company has not provided guidance for the March quarter, the board approved an increase of its existing share buyback program to $90 billion. It also announced a $0.23 a share common stock dividend that is payable May 12, 2022. The company's Board of Directors declared a 5% increase in its common stock dividend. In total, the company's stock dropped 3% after its financial results were reported.
Overall, the company's results showed a 9 percent increase in revenues and a 9% increase in net earnings over the previous year. The revenue number is lower than the Wall Street's expectations, but the company did beat its previous quarter's record. It's expected that the iPhone's demand for the iPhone 13 family will help to drive an increase in iPhone revenue. The company also saw its iPhone and Wearables install base rise to all-time highs. In addition, the company's Services business generated almost $20 billion in revenue. The company's wearables business was nearly the size of the Fortune 100 business, executives said.
The company is expected to announce results for its next quarter on April 28, which coincides with the first calendar quarter of the year. The company hasn't provided guidance for the next quarter, but investors are hopeful that Apple will post another record quarter. The company's executives will discuss the financial results on a conference call with analysts.