Apple beats earnings estimates, shares rise
Apple (NASDAQ: AAPL) reported financial results for its fiscal 2020 first quarter ending December 28, 2019.
Quarterly revenue stood at $91.8 billion beating expectations of $88.43 billion by a good margin. The revenue growth represents a 9% increase from the year-ago quarter and an all-time record!
Earnings were also very positive with the company reporting quarterly earnings per diluted share of $4.99 beating estimates of $4.54 per share creating another record.
Apple provided more detail on revenue split by product shown below:
– Phone: $56.0 billion
– Mac: $7.2 billion
– iPad: $6.0 billion
– Wearable, Home, and Accessories: $10.0 billion
Q2 F2020 guidance provided Apple (AAPL) include revenue between $63.0 billion and $67.0 billion and gross margin between 38.0 percent and 39.0 percent.
Tesla announces record sales
Tesla (NASDAQ: TSLA) reported record sales of its electric vehicles that helped the company post continue to report profitability again in the fourth quarter.
Earnings stood at $105 million and revenue reported was $7.4 billion beating market expectations.
Optimism from investors sent shares soaring almost 12% in after-hours trading.
Tesla also announced that production of its Model Y ahead of schedule at its Fremont factory. Tesla expects to “comfortably” exceed the production of 500,000 vehicles this year at its factories in Fremont and Shanghai. Model Y production in Shanghai will start in 2021.
Tesla delivered 19,475 Model S and Model X in the fourth quarter, a 29% decline from the same period last year. However, deliveries of the cheaper Model 3 vehicle increased to 92,620 in the fourth quarter, a 46% increase from the same period in 2018.
Facebook beats earnings estimates but reports slowing growth
Facebook (NASDAQ: FB) reported strong fourth-quarter earnings beating market estimates. However, the stock tanked by more than 7% due to concerns over slowing growth, rising costs and narrowing operating margin.
The key numbers from Facebook fourth-quarter earnings report are:
– Earnings (EPS): $2.56 vs. $2.53 per share market expectation
– Revenue: $21.08 billion vs. $20.89 billion market expectation
– Daily active users (DAUs): 1.66 billion vs. 1.65 billion market expectation
– Monthly active users (DAUs): 2.5 billion vs. 2.5 billion market expectation
– Average revenue per user (ARPU): $8.52 vs. $8.38 market expectation
Facebook also announced a $10 billion share repurchase program.