APPLE & AMD EARNINGS BREAKDOWN!

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Well the massive amount of companies that are reporting earnings rose on ladies and gentlemen we just had a md report earnings right now and apple as well just report earnings i just actually got off the apple conference call right now we got to talk about both these stocks which are making big moves after-hours if you are new here apple’s a very big stock in

My household why is it a very important stock well my wife’s biggest position is in apple all right two of my biggest positions like two of my top four biggest positions in my portfolio or to semiconductor companies these i’ve been adding aggressively last few months and they do a ton of business with apple and lassie i just built a small position in apple very

Recently when it made that huge drop and i covered that in the channel so needless to say apple is a very important company in the household ambi we don’t have a position and so apple after-hours is making a pretty nice upward move up about five and a half percent after-hours i’ve seen it up more than six percent at some points but as i’ve taken the screen shot

Up about five and a half percent after-hours which is a decent sized move for apple now as far as two apple suppliers out there to ione they’re making decent upward moves after hours as well crews up 2.4% after hours and skyworks solutions up 2.6% after hours so we’ll have to see how it all shakes out in the actual trading day tomorrow now just because a stock

Is up or down after hours it doesn’t mean it will actually do that during the trading day for instance yesterday whirlpool stock was down six and a half percent after hours and then i’ll send today it goes up like nine or ten percent during the actual trading day so sometimes you might think oh my gosh the stock is gonna go up a ton tomorrow and it actually goes

Down and sometimes you think oh my gosh the stocks and go way down tomorrow neglect she goes way up so you just you can’t you got to take it for what it is all right so i just got off this apple conference call right now and there’s some interesting things we found out on that apple conference call first is they say that the iphone 10 r is the number one selling

Iphone i predicted that many months ago when those phones came out i thought that would be the best selling one and it is actually the best selling one they specifically say that on the conference call the second best selling is the iphone that is a six point five inch the massive one and then the third best selling is actually that mid-range one there as far as

Apple watch they said they did record numbers of apple watch that was a hot seller and as well as ipad which is very surprising this is a best growth they’ve had in years an ipad pat had been kind of a business that was in decline or near stagnation for quite a while they just had the best growth an ipad that they’ve had in years and years and years so that’s big

News for them the air pods have been hot even as of now okay they specifically stated on the conference call that they were selling very very well but you know better than they ever have and even if you try to order them now it still takes about a week or so to actually get the air pods which is surprising because we’re pretty where we’re a long way past christmas

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So i’m not sure if it was the memes or what but air pods have become a very hot item the second generation of air pods by the way is supposed to come out some some point in the first half of 2019 so i’ll have to see about that now as far as some more exciting things and we’ll kind of get to the negatives services mac and wearables set new all-time revenue records

Eps reached an all-time high this quarter of $4 in 18 cents all right that’s very very very good news there now as far as some bad news because we definitely have some bad news here all right the first is total net sales were down 5% that is bad news all right because there’s no way other way to twist it other than that we’ll find out exactly why that is in just a

Minute here and if you look at net income net income is down slightly so although eps is up a bunch it’s mainly because they bought back a ton of shares and then just less sherriff’s account against that net income when when calculating out that eps so but neither society’ net income down very slightly in a pretty decent sized decline in revenues thereof around 5%

Now when we look at this slide here this shows you exactly why we see that decline okay we’re gonna see a lot of green checkmarks mean a lot of good news mac was up nicely in the quarter year-over-year basically the right-hand column shows you that this quarter last year versus this quarter this year mac was up well over half a billion dollars we had i pad business

Up over a billion dollars a year over year we had the wearables home and accessories up nearly two billion dollars year-over-year it’s a massive increase their services up well over one and a half billion dollars a year over year so needless to say most of those look great until you look at that very first line item which is iphone iphone was down nearly ten billion

Dollars year over a year that is a massive massive decline over here and even though all the rest of the businesses are growing great right now for apple you’re gonna see that total net sales were still down just because iphone is such a big business that whenever iphone dips like that it just hurts the company in such a big way out right now it’s becoming less

And less because the other product categories are starting to become so big specifically services at this point but it’s still when you’ve got a ten billion dollar decline in iphone business it still hurts a company like apple all right now for some good news out there cash they still got forty four billion dollars in cash on that balance sheet forty 1 billion

Dollars in marketable securities a hundred and fifty eight billion dollars in long-term investments on that balance sheet as of right now okay now for some more bad news they guided revenue to come in somewhere between fifty five billion and fifty nine billion for the upcoming quarter okay this quarter that we’re already in at this point in time the midpoint on

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That which is usually what you want to look at when you see a guide range like that the midpoint is 57 billion right well 57 billion that comes massively under what analysts were expecting analysts were expecting are around 59 million so mid point being around 57 needless to say apples this apple is basically saying that we’re gonna come under whatever analysts are

Expecting unless things go the best possible way for apple these should come under what analysts are doing now on the conference call the cfo specifically say that they wanted to be a little more cautious because they have such a big misses this past quarter they want to be a little more cautious going in but needless to say it’s still a two billion dollar difference

There between what analysts were expecting in the midpoint on what what apple is actually expecting so that’s something to take into account there now as far as good news got another dividend coming so basically if you own apple shares you can get 73 cents a share coming up here in february and and i think they’ll be raising that dividend probably sometime in the

Springtime now what a lot of people might be asked themselves they might say why is apple going up after hours like why is this stock moving up like i think overall we heard a lot of bad news especially around iphone and a lot of people are wondering why is this up but if you look at the apple chart right you got to understand that a lot of this negativity a lot of

The news had already been priced in just a few months ago apple stock was around 230 dollars then we got the bad news about basically iphones you know or selling very weak in china specifically and basically that already brought apple stock down in a massive massive way so there was a lot of thoughts that that sales weren’t going very well that brought the stock

Down there was also a weakness in the market that brought the stock down and then we got confirmation that very beginning in january that basically iphone sales were weak specifically in china and that was hurting their business in a massive massive way and so a lot of that in bad news was already priced into apple stock which is why you can get a stock here that

You know when when the whole world’s not falling for apple you know it can kind of make it bounce like that so i have to see what actually happens tomorrow in apple stock but as of right now it’s looking like it will probably be a pretty good day for apple stock tomorrow all right now let’s get into amd so amd is making a nice move after hours up around 9% after

Hours it did have a very bad day today it was down about four and a half percent today now this comes after nvidia fell about four and a half percent today and the previous day nvidia fell around you i was between 13 and 15 percent the previous day on some very very bad earnings coming out of nvidia just some very bad news basically nvidia had already come under

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Way under what analysts were expecting then nvidia said oh no it’s actually much much worse than we even thought it was just a big big decline there an nvidia stock but as far as amd amd says it expects revenue in 2019 to grow at a high single-digit percentage while analysts were targeting around 6 percent the company said despite near term graphic headwinds and

Revenue falling short of analyst estimates for the fourth and current quarters is banking on its newest graphics and data center chips to bolster growth for the year stifle analyst kevin cassidy said amd’s results were not as bad as feared especially compared to those in mom amd’s fourth-quarter gross margin rose to 38 percent from 34% wall street loves a rising

Gross margin it’s one of the biggest metrics that’s kind of like regular folks don’t pay attention to but my goodness does wall street love a rising gross margin their company also said it expects adjusted gross margins to be more than 41% for 2019 the highest level in nearly eight years the more resilient gross margin outlook provides some level of comfort

To investors said this in alice also amd is well-positioned to continue to gain market share from intel in the high margin server market especially in the second half of 2019 sales at amd’s computing graphics segment which includes graphic chip sales to data centers rose 8.5 percent to 986 million beating what analysts were expecting of around 939 there so that

Basically sales were a lot better two data centers out there now what’s very interesting about this is a chip maker forecast turn quarter revenue to be around 1.25 billion plus or minus around 50 million that’s a drop of 24% last year but that’s also well below what analysts were expecting which was around 1.4 7 billion its quarterly revenue of 1.4 2 billion also

Missed expectations of one point four five so that right there is what we call a double miss in the stock market okay basically that means a company missed what analysts were expecting in the past quarter and they’re also saying we’re gonna miss your guys numbers that you were expecting for the next quarter as well that’s what we call a double miss there which

Is very very interesting that you could get an amd stock up 9 percent after-hours on what we literally call a double miss which is usually the worst case scenario for a stock i was very rare that i see double misses out there especially a decent-size double miss like amd had as far as next quarters guidance goes it’s very rare that you’ll see a double miss and

A stock actually move up but that’s exactly what has happened with amd and i think just all the negativity around nvidia yeah a lot of people just thought it was gonna be the war end of the world for amd and the numbers were gonna be way way worse than what they were and they didn’t come out to be worse and and you know there’s you get a stock up 9 percent after

Hours anyways let me know if you own apple stock or amd stock i would love to hear from you guys in that comment section as always make sure you smash thumbs up you enjoy this thank you for watching have a great day

Transcribed from video
APPLE & AMD EARNINGS BREAKDOWN! By Financial Education

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