Apple reported another blowout quarter crushing Wall Street’s expectation and reporting double-digit growth in every single one of its product categories. The company witnessed a 62% surge in product revenues including an all-time record for the Mac and we believe that the ARM-based M1 chip may have a lot to do with this. Not only is this chip delivering a 3.5x faster performance and nearly 2x of power efficiency, it is also reducing the company’s overall cost of production. Apple’s high-margin service business which includes the App Store, Apple TV+, Apple News+, Apple Arcade, and Apple Music also witnessed a strong performance. With the global semiconductor shortage and a warning issued by Samsung with respect to a drop in revenues in the coming quarter, Apple could truly capitalize on its best-in-class supply chain and make the most out of this shortage. The company generated huge cash flows and the management increased its dividend payout by 7% to $0.22 per share and authorized $90 billion in share buybacks. We maintain our ‘Outperform’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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