APPLE Apple’s fourth-quarter results were released on November 2nd, 2023. Although the fiscal quarter ended on September 30th, the financial results conference call took place on 11/2. The consumer electronics company reported an all-time revenue record in Services (“Music, movies, TV shows, stickers, books, and app purchases”). The fiscal results beat analyst expectations in sales and earnings per share, but overall revenue fell for the fourth quarter in a row. Outside of iPhone sales, in many other areas have continuously declined, especially in iPad and Mac segments. EPS growth reached double digits in the September quarter, paying nearly $25 billion to shareholders while continuing to invest in new products. The board of directors stated a cash dividend of $0.24 per share of the common stock. Tim Cook, Apple’s CEO, was pleased to report a September quarter revenue record for the iPhone, as their flagship product performed better than expected. The updates (especially USB-C charging ports) played a vital role, as iPhone 15 sales surpassed the iPhone 14 in double digits. Overall revenue for the fourth quarter dropped by 1 percent year over year, causing the longest “slump” since 2001. Mac sales are one of the biggest causes of this, alongside iPads, as they experienced a double-digit percent fall year over year. Cook still expressed optimism for the upcoming holiday season, referencing the iPhone 15 and new carbon-neutral Apple Watches. He also believes in a strong market for Macs next quarter, with the M3 chip and new products. #Apple #StockMarket #Earnings #Investing #Technology

X: TESLA Tesla’s third-quarter results were released on 10/18, and the automotive company missed its earnings and revenue targets for the first time since the second quarter in 2019. Some of the loss in revenue growth can be attributed to a reduced average selling price and a $0.4 billion negative foreign currency impact. The negative impacts on profitability growth include a reduced average selling price, increased operating expenses, increased production costs, and a negative FX impact. In the (unaudited) financial summary table shown in the Q3 results, total revenues, net income, and earnings per share attributable to common stockholders were all below the 2023 Q2 results. Total car production and deliveries and the cost of goods sold per vehicle have significantly gone down as well, compared to the last fiscal quarters. During the earnings call, CEO Elon Musk indicated concern regarding the current state of the global economy, explaining the focus on making cars more affordable. Wanting to price the cars at more affordable prices, Musk described the difficulty of buying cars at high prices, specifically citing the high interest rates and understanding how it would drastically affect monthly payments. The company plans to grow production, expecting 1.8 million cars in 2023, and Cybertruck deliveries remain on track to happen towards the end of 2023. These two major changes, especially deliveries of the Cybertruck, are anticipated to have a positive impact on Tesla’s Q4 earnings, as well as TSLA’s stock price.