On August 1, 2024, Apple Inc (AAPL, Financial) released its 8-K filing for the fiscal 2024 third quarter ended June 29, 2024. The company reported quarterly revenue of $85.8 billion, up 5% year-over-year, and quarterly earnings per diluted share (EPS) of $1.40, up 11% year-over-year. These results surpassed analyst estimates of $1.35 EPS and $84.53 billion in revenue.
Company Overview
Apple Inc (AAPL, Financial) is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm's sales, and other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. The company has progressively added new applications, such as streaming video, subscription bundles, and augmented reality. Apple designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Performance and Challenges
Apple Inc (AAPL, Financial) reported a new June quarter revenue record of $85.8 billion, up 5% from a year ago. This performance is significant as it demonstrates the company's ability to grow despite a challenging macroeconomic environment. However, the company faces challenges such as reliance on third-party suppliers, competitive pressures, and regulatory scrutiny, which could impact future performance.
Financial Achievements
Apple Inc (AAPL, Financial) achieved several financial milestones this quarter. The company's services revenue reached an all-time high, contributing significantly to the overall revenue growth. Additionally, the installed base of active devices reached a new all-time high in all geographic segments, reflecting high levels of customer satisfaction and loyalty.
Key Financial Metrics
Apple Inc (AAPL, Financial) reported the following key financial metrics for Q3 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $85.8 billion | $81.8 billion |
| Net Income | $21.4 billion | $19.9 billion |
| EPS (Diluted) | $1.40 | $1.26 |
| Operating Cash Flow | $29 billion | Not Provided |
Commentary
“Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago,” said Tim Cook, Apple’s CEO. “During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work.”
“During the quarter, our record business performance generated EPS growth of 11 percent and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholders,” said Luca Maestri, Apple’s CFO. “We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty.”
Analysis
Apple Inc (AAPL, Financial)'s strong performance in Q3 2024 highlights its resilience and ability to innovate in a competitive market. The company's focus on expanding its services segment and maintaining high customer satisfaction has paid off, as evidenced by the record revenue and EPS. However, the challenges of supply chain dependencies and regulatory pressures remain areas to watch. Overall, Apple Inc (AAPL) continues to demonstrate robust financial health and strategic growth, making it a compelling consideration for value investors.
Explore the complete 8-K earnings release (here) from Apple Inc for further details.
