Reading Between the Lines of Apple’s 1Q25 Earnings Q&A With Analysts
Today's Above Avalon Daily email contains the following story:
Reading Between the Lines of Apple’s 1Q25 Earnings Q&A With Analysts
We will continue reviewing Apple’s 1Q25 earnings. Here’s a recap of where things stand:
Last Friday’s update : Go over my big picture thoughts / compare Apple’s results to my expectations.
Today’s update: Examine Apple’s earnings call with analysts. Instead of just recapping the question and answer exchanges that occurred on Apple’s 1Q25 earnings call, we will go over my thoughts / response to each exchange.
Wednesday’s update: Cover various Apple earnings topics. Given the length of today’s email, a few discussion topics that could have been put into today’s email have been pushed to Wednesday's update.
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Reading Between the Lines of Apple’s 2Q24 Earnings Q&A With Analysts
Hello everyone. This is shaping up to be a busy week. We still have a good amount to discuss when it comes to Apple’s 2Q24 earnings. There is then an Apple product event (online) on Tuesday at 10 am ET. Let’s jump into today’s update.
Reading Between the Lines of Apple’s 2Q24 Earnings Q&A With Analysts
After recapping each question-and-answer exchange that occurred on the call between Apple and sell-side analysts, we will go over my response to the exchange. Let’s go beyond what was talked about on the call with the 10th installment of reading between the lines of Apple's earnings Q&A with analysts.
NOTE: The following earnings call questions (“Q (Sell-Side Firm)”) and answers (“Cook” or “Luca”) have been cut, summarized, paraphrased, and rearranged for clarity. To read the full question and answer exchanges, Seeking Alpha offers a written transcript here.
3Q24 Guidance
Q (Goldman Sachs): What gives you confidence that revenue will grow in 3Q24 (the June quarter)?
Luca: Our guidance commentary will be limited to my prepared remarks: Overall revenue will be up “low-single-digits,” Services growing “double-digits at a rate that is similar to what we’ve done in the first half of our fiscal year,” and iPad up double-digits.
My response: With Services representing ~30% of 3Q24 revenue, growth of approximately 15% will go a long way to offset weakness in HW.
Q (Citi): What are you assuming for commodity pricing on memory in guidance?
Luca: Our guidance assumes memory and FX to be slight headwinds. FX will have a 30 basis point negative impact sequentially.
My response:
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Reading Between the Lines of Apple’s 1Q24 Earnings Q&A With Analysts
In today’s update, we will focus on Apple’s 1Q24 earnings Q&A session with analysts.
After recapping each question-and-answer exchange that occurred on the call between Apple and sell-side analysts, we will go over Neil’s response to the exchange. Let’s go beyond what was talked about on the call with the ninth installment of reading between the lines of Apple's earnings Q&A with analysts.
NOTE: The following earnings call questions (“Q (Sell-Side Firm)”) and answers (“Cook” or “Luca”) have been cut, summarized, paraphrased, and rearranged for clarity. To read the full question and answer exchanges, Seeking Alpha offers a written transcript here.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.