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'NEW ENERGY': Analysts are bullish about Apple's strong Q4 earnings

Edoardo Maggio   

'NEW ENERGY': Analysts are bullish about Apple's strong Q4 earnings
Tech1 min read

Tim Cook

Getty

  • Apple reported its fourth-quarter earnings on Thursday.
  • It beat Wall Street's expectations, with strong results across all of its product lines.
  • The forecast for Q1 2018 is also good, and most analysts are upping their price target for the stock.


Apple announced its earnings for the fourth quarter of 2017 on Thursday, and blew past analysts' expectations.

The company displayed strength across all of its key product lines - iPhone, iPad, and Mac - reporting profits of $10.7 billion (£8.1 billion) on $52.6 billion (£40.2 billion) of revenue.

The firm sold 46.7 million iPhones, 10.3 million iPads, and 5.4 million Macs, and briefly crested a $900 billion (£689 billion) market capitalisation in the after hours, with shares up 3%.

Apple's services experienced particularly strong momentum, with a 34% increase year-over-year (YoY), 18% quarter-over-quarter (QoQ), and a $8.5 billion (£6.5 billion) in revenue, which would put it at no. 95 on the Fortune 500 list.

The company is especially bullish about the next quarter, too, in anticipation of the upcoming holiday season; CEO Tim Cook said that the company is "literally firing on all cylinders," with strong revenue guidance ranging from $84 to $87 billion (£64-£66.5 billion).

The new flagship product, the iPhone X, goes on sale today (Friday 3 November).

Keep reading to see a complete roundup of analysts' reactions to Apple's Q4 earnings, but first, here is a recap of the key numbers:

Revenue: $52.6 billion (£40.2 billion) versus $50.7 billion (£38.8 billion) expected

iPhone unit sales: 46.7 million versus 46 million expected (up 2% YoY)

Adjusted EPS (GAAP): $2.07 (£1.58) vs $1.87 (£1.43) (up 24% YoY)

Q1 2018 forecast: $84 billion (£64 billion) to $87 billion (£66.5 billion), with a midpoint slightly above the $85.2 billion ($65.2 billion) expectation.

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