Apple Inc. share price corrects as revenue slows
Despite a minor dip in quarterly revenue, the company's earnings per share have risen, and its Services sector has achieved record revenue.
Key Takeaways:
- Apple Inc. reported a slight decline in quarterly revenue, although the company's earnings per share have increased.
- The Services sector of Apple experienced record-breaking revenue during the June quarter
- Apple's active devices in use reached an all-time high across all geographic segments, demonstrating the company's widespread popularity and market presence.
- The company generated a strong operating cash flow of $26bn and declared a cash dividend for shareholders.
Apple Inc. (AAPL) recently unveiled its fiscal third quarter results for 2023, ending on July 1, 2023. The tech behemoth reported a quarterly revenue of $81.1bn, a slight 1% decrease from the previous year's comparative figure.
However, the June quarter was a record-breaker for the Services sector, driven by over 1 billion paid subscriptions. Robust iPhone sales in emerging markets also played a significant role in bolstering the company's overall strength during this quarter.
Business performance in the June quarter showed a year-over-year improvement from the March quarter. Additionally, the number of active devices in use reached an unprecedented high across all geographic segments.
In this quarter, Apple generated a robust operating cash flow $26bn and announced a $0.24 dividend per share of the company's common stock. This dividend will be payable on August 17, 2023, to shareholders of record as of the close of business on August 14, 2023.
In conclusion, Apple Inc. (AAPL) has shown resilience and potential for growth in its fiscal third quarter results of 2023. Despite a minor dip in quarterly revenue, the company's earnings per share have risen, and its Services sector has achieved record revenue.
Apple Inc. – trading view
The share price has accelerated a pullback from near term highs following the release of Apple’s Q3 2023 results. The long-term trend does however remain up as we see the price still trading firmly above the 200-day simple moving average (blue line).
Trend followers might look for long entry on confirmation that the pullback has ended. A bullish price reversal around either the 181.70 or 176.40 support levels might provide such an opportunity. In this scenario, 197.95 would become a longer-term upside target, while a close below the reversal low might be used as a stop loss consideration.
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