Although Apple posted a record $83.4 Billion Quarter, their stock has fallen for missing Wall Street's Expectations due to Supply Restraints
This afternoon Apple announced financial results for its fiscal 2021 fourth quarter ended September 25, 2021. The Company posted a September quarter revenue record of $83.4 billion, up 29 percent year over year, and quarterly earnings per diluted share of $1.24. Though after hours, the stock has fallen due to missing Wall Street expectations due to supply restraints.
Tim Cook, Apple’s CEO Statement: "This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways. We are infusing our values into everything we make — moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future."
Luca Maestri, Apple’s CFO Statement: "Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment. The combination of our record sales performance, unmatched customer loyalty, and strength of our ecosystem drove our active installed base of devices to a new all-time high. During the September quarter, we returned over $24 billion to our shareholders, as we continue to make progress toward our goal of reaching a net cash neutral position over time."
Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. The dividend is payable on November 11, 2021 to shareholders of record as of the close of business on November 8, 2021.
Apple's Stock Price Falls
Although Apple delivered a record quarter, revenue fell short of Wall Street expectations which sent the stock down after hours.
Cook told CNBC’s Josh Lipton: "We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion. The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia."
Apple hasn’t provided official guidance since the start of the pandemic, but Cook said Apple expects "solid year-over-year revenue growth" in the December quarter despite the fact Cook said Apple will face worse supply constraints in the current quarter.
CNBC reported that Cook added, "So we’ve finished about a month of the quarter. The Covid related manufacturing disruptions have improved greatly. The chip shortages linger on."
Cook also noted that the supply issues were with chips on "legacy nodes," or older chips, instead of the technologically advanced processors at the heart of Apple’s devices.
Consolidated Financial Statements