Apple results beat on strongest June quarter on record, but tariff refund clouds profit picture; shares down
AAPL•Outlook
Company did not provide specific guidance for the current quarter or full year.
Result drivers
- iPhone, Mac, Services growth - Double-digit revenue growth in iPhone, Mac and Services segments drove results, per CEO Tim Cook.
- Tariff refunds - Tariff refunds boosted gross margin by about 2 percentage points and EPS by $0.11.
- Installed base growth - Installed base of active devices reached a new all-time high across all major product categories and regions, per CFO Kevan Parekh.
Key details and analyst coverage
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q3 Revenue | $109.42 bln | |
| Q3 EPS | $2.02 | |
| Q3 Dividend | $0.27 |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 32 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell". The average consensus recommendation for the phones & handheld devices peer group is "buy".
Wall Street's median 12-month price target for Apple Inc is $329.50, about 2.6% below its July 29 closing price of $338.19. The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 28 three months ago.
