AAPL
$142.16
Apple
($7.68)
(5.13%)
Earnings Details
3rd Quarter June 2022
Thursday, July 28, 2022 4:30:00 PM
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Summary

Apple Beats

Apple (AAPL) reported 3rd Quarter June 2022 earnings of $1.20 per share on revenue of $83.0 billion. The consensus earnings estimate was $1.14 per share on revenue of $82.4 billion. The Earnings Whisper number was $1.19 per share. Revenue grew 1.9% on a year-over-year basis.

The company said during its conference call it expects fourth quarter revenue to be above $84.92 billion. The current consensus revenue estimate is $89.92 billion for the quarter ending September 30, 2022.

Apple Inc designs, manufactures, & markets mobile communication & media devices, personal computers, & portable digital music players, & sells a variety of related software, services, accessories, networking solutions, & third-party digital content.

Results
Reported Earnings
$1.20
Earnings Whisper
$1.19
Consensus Estimate
$1.14
Reported Revenue
$82.96 Bil
Revenue Estimate
$82.42 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Apple Reports Third Quarter Results

iPhone and Services drive June quarter record revenue

Active installed base of devices reaches all-time high for all major product categories

CUPERTINO, Calif.--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2022 third quarter ended June 25, 2022. The Company posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20.

“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”

“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category,” said Luca Maestri, Apple’s CFO. “During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on August 11, 2022 to shareholders of record as of the close of business on August 8, 2022.

Apple will provide live streaming of its Q3 2022 financial results conference call beginning at 2:00 p.m. PT on July 28, 2022 at apple.com/investor/earnings-call. This webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the payment of the Company’s quarterly dividend and its plans for new features and products. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, war, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

© 2022 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares which are reflected in thousands and per share amounts)

 

 

Three Months Ended

 

Nine Months Ended

 

June 25,
2022

 

June 26,
2021

 

June 25,
2022

 

June 26,
2021

Net sales:

 

 

 

 

 

 

 

Products

$

63,355

 

 

$

63,948

 

$

245,241

 

 

$

232,309

Services

 

19,604

 

 

 

17,486

 

 

58,941

 

 

 

50,148

Total net sales (1)

 

82,959

 

 

 

81,434

 

 

304,182

 

 

 

282,457

Cost of sales:

 

 

 

 

 

 

 

Products

 

41,485

 

 

 

40,899

 

 

155,084

 

 

 

149,476

Services

 

5,589

 

 

 

5,280

 

 

16,411

 

 

 

15,319

Total cost of sales

 

47,074

 

 

 

46,179

 

 

171,495

 

 

 

164,795

Gross margin

 

35,885

 

 

 

35,255

 

 

132,687

 

 

 

117,662

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

6,797

 

 

 

5,717

 

 

19,490

 

 

 

16,142

Selling, general and administrative

 

6,012

 

 

 

5,412

 

 

18,654

 

 

 

16,357

Total operating expenses

 

12,809

 

 

 

11,129

 

 

38,144

 

 

 

32,499

 

 

 

 

 

 

 

 

Operating income

 

23,076

 

 

 

24,126

 

 

94,543

 

 

 

85,163

Other income/(expense), net

 

(10

)

 

 

243

 

 

(97

)

 

 

796

Income before provision for income taxes

 

23,066

 

 

 

24,369

 

 

94,446

 

 

 

85,959

Provision for income taxes

 

3,624

 

 

 

2,625

 

 

15,364

 

 

 

11,830

Net income

$

19,442

 

 

$

21,744

 

$

79,082

 

 

$

74,129

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.20

 

 

$

1.31

 

$

4.86

 

 

$

4.42

Diluted

$

1.20

 

 

$

1.30

 

$

4.82

 

 

$

4.38

Shares used in computing earnings per share:

 

 

 

 

 

 

 

Basic

 

16,162,945

 

 

 

16,629,371

 

 

16,277,824

 

 

 

16,772,656

Diluted

 

16,262,203

 

 

 

16,781,735

 

 

16,394,937

 

 

 

16,941,527

 

 

 

 

 

 

 

 

(1) Net sales by reportable segment:

 

 

 

 

 

 

 

Americas

$

37,472

 

 

$

35,870

 

$

129,850

 

 

$

116,486

Europe

 

19,287

 

 

 

18,943

 

 

72,323

 

 

 

68,513

Greater China

 

14,604

 

 

 

14,762

 

 

58,730

 

 

 

53,803

Japan

 

5,446

 

 

 

6,464

 

 

20,277

 

 

 

22,491

Rest of Asia Pacific

 

6,150

 

 

 

5,395

 

 

23,002

 

 

 

21,164

Total net sales

$

82,959

 

 

$

81,434

 

$

304,182

 

 

$

282,457

 

 

 

 

 

 

 

 

(1) Net sales by category:

 

 

 

 

 

 

 

iPhone

$

40,665

 

 

$

39,570

 

$

162,863

 

 

$

153,105

Mac

 

7,382

 

 

 

8,235

 

 

28,669

 

 

 

26,012

iPad

 

7,224

 

 

 

7,368

 

 

22,118

 

 

 

23,610

Wearables, Home and Accessories

 

8,084

 

 

 

8,775

 

 

31,591

 

 

 

29,582

Services

 

19,604

 

 

 

17,486

 

 

58,941

 

 

 

50,148

Total net sales

$

82,959

 

 

$

81,434

 

$

304,182

 

 

$

282,457

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

 

 

June 25,
2022

 

September 25,
2021

ASSETS:

Current assets:

 

 

 

Cash and cash equivalents

$

27,502

 

 

$

34,940

Marketable securities

 

20,729

 

 

 

27,699

Accounts receivable, net

 

21,803

 

 

 

26,278

Inventories

 

5,433

 

 

 

6,580

Vendor non-trade receivables

 

20,439

 

 

 

25,228

Other current assets

 

16,386

 

 

 

14,111

Total current assets

 

112,292

 

 

 

134,836

 

 

 

 

Non-current assets:

 

 

 

Marketable securities

 

131,077

 

 

 

127,877

Property, plant and equipment, net

 

40,335

 

 

 

39,440

Other non-current assets

 

52,605

 

 

 

48,849

Total non-current assets

 

224,017

 

 

 

216,166

Total assets

$

336,309

 

 

$

351,002

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

 

 

 

Accounts payable

$

48,343

 

 

$

54,763

Other current liabilities

 

48,811

 

 

 

47,493

Deferred revenue

 

7,728

 

 

 

7,612

Commercial paper

 

10,982

 

 

 

6,000

Term debt

 

14,009

 

 

 

9,613

Total current liabilities

 

129,873

 

 

 

125,481

 

 

 

 

Non-current liabilities:

 

 

 

Term debt

 

94,700

 

 

 

109,106

Other non-current liabilities

 

53,629

 

 

 

53,325

Total non-current liabilities

 

148,329

 

 

 

162,431

Total liabilities

 

278,202

 

 

 

287,912

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,095,378 and 16,426,786 shares issued and outstanding, respectively

 

62,115

 

 

 

57,365

Retained earnings

 

5,289

 

 

 

5,562

Accumulated other comprehensive income/(loss)

 

(9,297

)

 

 

163

Total shareholders’ equity

 

58,107

 

 

 

63,090

Total liabilities and shareholders’ equity

$

336,309

 

 

$

351,002

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

 

 

Nine Months Ended

 

June 25,
2022

 

June 26,
2021

Cash, cash equivalents and restricted cash, beginning balances

$

35,929

 

 

$

39,789

 

Operating activities:

 

 

 

Net income

 

79,082

 

 

 

74,129

 

Adjustments to reconcile net income to cash generated by operating activities:

 

 

 

Depreciation and amortization

 

8,239

 

 

 

8,295

 

Share-based compensation expense

 

6,760

 

 

 

5,961

 

Deferred income tax expense/(benefit)

 

2,756

 

 

 

(737

)

Other

 

(61

)

 

 

(689

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

4,561

 

 

 

(1,316

)

Inventories

 

1,049

 

 

 

(1,213

)

Vendor non-trade receivables

 

4,789

 

 

 

4,892

 

Other current and non-current assets

 

(3,289

)

 

 

(5,899

)

Accounts payable

 

(6,108

)

 

 

(1,786

)

Deferred revenue

 

260

 

 

 

1,738

 

Other current and non-current liabilities

 

(14

)

 

 

463

 

Cash generated by operating activities

 

98,024

 

 

 

83,838

 

Investing activities:

 

 

 

Purchases of marketable securities

 

(70,178

)

 

 

(94,052

)

Proceeds from maturities of marketable securities

 

24,203

 

 

 

49,880

 

Proceeds from sales of marketable securities

 

33,609

 

 

 

36,745

 

Payments for acquisition of property, plant and equipment

 

(7,419

)

 

 

(7,862

)

Payments made in connection with business acquisitions, net

 

(169

)

 

 

(13

)

Other

 

(1,183

)

 

 

(78

)

Cash used in investing activities

 

(21,137

)

 

 

(15,380

)

Financing activities:

 

 

 

Payments for taxes related to net share settlement of equity awards

 

(5,915

)

 

 

(5,855

)

Payments for dividends and dividend equivalents

 

(11,138

)

 

 

(10,827

)

Repurchases of common stock

 

(64,974

)

 

 

(66,223

)

Proceeds from issuance of term debt, net

 

 

 

 

13,923

 

Repayments of term debt

 

(6,750

)

 

 

(7,500

)

Proceeds from commercial paper, net

 

4,970

 

 

 

3,022

 

Other

 

(148

)

 

 

489

 

Cash used in financing activities

 

(83,955

)

 

 

(72,971

)

Decrease in cash, cash equivalents and restricted cash

 

(7,068

)

 

 

(4,513

)

Cash, cash equivalents and restricted cash, ending balances

$

28,861

 

 

$

35,276

 

Supplemental cash flow disclosure:

 

 

 

Cash paid for income taxes, net

$

12,251

 

 

$

18,536

 

Cash paid for interest

$

1,910

 

 

$

1,870

 

 

Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142

Investor Relations Contact:
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402

Source: Apple Inc.