Apple Inc. Skyrockets on Soaring Q4 “iPhone” Sales—Outlook for 2018 Strong

Apple Inc. Market Cap Cracks $900.0 Billion

Apple Inc. (NASDAQ/APPL) blew Wall Street away when it announced its financial results for the fourth quarter ended September 30, 2017. The company also announced soaring “iPhone” sales and has received critical acclaim for its “iPhone X,” despite an eye-watering price tag of US$999.00.

On Thursday, November 2, Apple announced that revenue for the fourth quarter of fiscal 2017 advanced 12% year-over-year to $52.6 billion. Quarterly earnings per share were up 24% to $2.07. For the 12 months ended September 30, revenue increased 6.3% year-over-year to $229.23 billion. Full-year diluted earnings per share increased 10.8% to $9.21.1

In addition to generating strong operating cash flow of $15.7 billion and returning $11.0 billion to investors through its capital return program, Apple also provided a strong outlook for fiscal 2018.

Apple also outpaced Wall Street expectations for iPhone sales. In the fourth quarter, the company sold 46.7 million iPhones. Wall Street was looking for 46 million. In the fourth quarter of 2016, Apple sold 45.5 million iPhones.2

During the fourth quarter, Apple also sold 10.3 million “iPads” and 5.4 million “Mac” computers. Analysts were looking for sales of 10 million and 4.98 million, respectively. Keep in mind that the “iPhone 8” and “iPhone 8 Plus” were only launched on September 22, so the fourth-quarter results only account for a little more than a week of sales for those devices.

Meanwhile, pre-orders for the iPhone X started in late October and the phone hit Apple stores on November 3; that means the fourth-quarter results don’t include any iPhone X sales.

Looking ahead to the first quarter of fiscal 2018, ended December 31, 2017, sales are expected to be even stronger thanks in large part to iPhone X sales. A review from CNBC says the new iPhone X is the best smartphone you can buy.3

“You can see from our guidance, we’re very bullish,” said company CEO Tim Cook on a conference call.4

There is another reason for investors to remain bullish on Apple. The company could be one of the biggest winners of President Donald Trump’s proposed tax reform on foreign earnings. Apple has an estimated $268.9 billion in cash. Approximately $252.3 billion, or nearly 95%, is held by foreign subsidiaries.

Trump’s proposed tax bill includes a tax holiday, one that would allow Wall Street to bring some of its overseas profits back to the U.S., where it would be taxed at a much more favourable rate.

The thinking is, companies would use the influx of cash for hiring and development, but historically, repatriated money from tax holidays tends to go to dividends and share repurchase programs.

Apple’s share price has been on a tear in 2017, climbing more than 50%. The day before Apple announced its fourth-quarter financial results, shares closed at $176.24, giving it a market cap of $904.0 billion.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

The broader markets have been bullish, but technology stocks like Apple Inc., Alphabet Inc. (NASDAQ/GOOG), and Microsoft Corporation (NASDAQ/MSFT) have been on a tear. Even some under-the-radar tech stocks have been skyrocketing: Micron Technology, Inc. (NASDAQ/MU) is up more than 100% year to date and MiX Telematics Limited (NYSE/MIXT) is up more than 83% since January. The question is, how do you know when to take a position in big tech stocks and how do you find up-and-coming tech stocks? The trading professionals at Learn-To-Trade.com can help with that.

Learn-To-Trade.com is Canada’s oldest and leading stock market trading course, and it is designed to help investors of every skill level to trade more confidently and profit consistently.

In fact, Learn-To-Trade.com is who the industry professionals turn to. Learn-To-Trade.com Inc.’s instructors are also educators for the Toronto-Montreal Exchange and host educational sessions for major banks across Canada.

At Learn-To-Trade.com, our expert traders will show you how to read charts and teach you all about technical analysis, fundamentals, risk management, and capital preservation. You will also learn about commodities, futures, stock options, foreign markets, stock index trading, and Forex (currency) trading.

At Learn-To-Trade.com, we understand that investors learn at different paces. That’s why we have a unique Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Sources:

  1. “Apple, Inc., Condensed Consolidated Statements of Operations,” Apple Inc. web site, November 2, 2017; https://www.apple.com/newsroom/pdfs/fy17-q4/Q4FY17ConsolidatedFinancialStatements.pdf
  2. “Form 10-K,” Apple Inc. web site, November 2, 2017; http://files.shareholder.com/downloads/AAPL/5378826958x0x962680/D18FAEFF-460A-4168-993D-A60CBA8ED209/_10-K_2017_As-Filed_.pdf
  3. Haselton, T. “CNBC reviews the $1,150 new iPhone X — the best smartphone you can buy,” CNBC web site, October 31, 2017; https://www.cnbc.com/2017/10/31/apple-iphone-x-review-the-best-smartphone-you-can-buy.html
  4. “Apple Earnings Call,” Apple Inc. web site, November 2, 2017; https://www.apple.com/investor/earnings-call/

Photo credit: iStock.com/NicoElNino

The following two tabs change content below.
George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Latest posts by George Karpouzis (see all)

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
Learn To Trade
5.0
2016-10-07T08:56:52-04:00
Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
4.0
14