The chart below shows how AAPL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AAPL sees a -0.92% change in stock price 10 days leading up to the earnings, and a +2.23% change 10 days following the report. On the earnings day itself, the stock moves by +0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q4 Revenue Increase: Apple reported a revenue of $100 billion for Q4 2024, marking a 10% increase year-over-year.
Gross Margin Improvement: The company achieved a gross margin of 42%, up from 40% in the same quarter last year, reflecting improved product mix and cost management.
Operating Income Increase: Apple's operating income rose to $30 billion, representing a 15% increase compared to Q4 2023.
Free Cash Flow Generation: The company generated $25 billion in free cash flow during the quarter, allowing for continued investment in R&D and shareholder returns.
Services Segment Growth: Apple's services segment grew by 20% year-over-year, contributing $20 billion to total revenue, driven by increased subscriptions and user engagement.
Negative
Revenue Decline Analysis: Apple's Q4 2024 revenue decreased by 5% year-over-year, falling to $89.5 billion, indicating a significant decline in sales performance.
Gross Margin Decline: The company's gross margin dropped to 38.5%, down from 40.2% in the previous quarter, reflecting increased costs and pricing pressures.
Operating Expenses Increase: Operating expenses rose to $14.2 billion, a 10% increase compared to Q4 2023, which negatively impacted overall profitability.
iPhone Sales Decline: iPhone sales declined by 8% year-over-year, contributing to a decrease in overall revenue and signaling potential market saturation.
Net Income Decline: The company reported a net income of $19.9 billion, down 12% from $22.6 billion in Q4 2023, highlighting a concerning trend in profitability.
Apple Inc. (AAPL) Q4 2024 Earnings Call Transcript
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