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5 big earnings reports: Apple's biggest sales drop in 7 years

Investing.com
·4 min read

By Davit Kirakosyan

Investing.com -- Apple shares fell more than 3% premarket today after the company announced a Q1 miss, pressured by weaker iPhone sales. Here are 5 of the biggest earnings reports since yesterday's close, all first covered on InvestingPro.

Apple reports biggest revenue slide since 2016

Apple's (NASDAQ:AAPL) Q1 EPS came in at $1.88, worse than the consensus estimate of $1.94. Revenue fell 5% to $117.2 billion, missing the consensus estimate of $121.88B, representing the biggest quarterly revenue drop since 2016. This was due to weaker iPhone sales, which were down 8% to $65.78B amid a difficult macroeconomic environment and production issues in China.

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Following the results, Citi reiterated its Buy rating and noted, “Bears will be quick to point out negative sales growth but we note when adjusting for FX that sales and outlook are flat, which is materially better than other consumer electronic companies.” The firm highlighted that services are also outperforming and the company’s installed base continues to grow, with over 2 billion active Apple devices and iPhone installed base estimated at 1.2+ billion.

Similarly, Evercore maintained its Outperform rating, while JPMorgan lowered its price target on the stock to $175.00 from $180.00, maintaining an Overweight rating.

Alphabet shares plunge on Q4 miss

Alphabet (NASDAQ:GOOGL) shares dropped more than 4% premarket today after the company reported its Q4 results, with EPS of $1.05 coming in worse than the consensus of $1.18. Revenue was $76.05B, compared to the consensus estimate of $76.07B.

The miss was due to a decline in revenue in the core advertising business, as advertisers reduced spending due to economic uncertainty. Advertising revenue dropped to $59B in Q4 from $61.24B in the prior-year period, with YouTube's advertising revenue falling to $7.96B from $8.63B. However, Google Cloud revenue saw an increase, rising to $7.32B from $5.54B in the prior-year period.

Following the report, Wolfe said it continues to believe the company's long-term competitive moats in the digital advertising space are solid and reiterated its Outperform rating with a revised price target of $120 (from $110).

Several analysts also raised their price targets on the stock, including Morgan Stanley with its new price target of $135.00 (from $125.00), Evercore ISI with a new price target of $125.00 (from $120.00), and Roth Capital with a new price target of $126.00 (from $120.00).

Amazon down 5% on Q4 EPS miss & muted outlook

Amazon (NASDAQ:AMZN) shares were trading more than 5% lower premarket today after the company reported its Q4 results, with EPS of $0.03 coming in worse than the consensus estimate of $0.17. While revenue of $149.2B (up 8.5% year-over-year) beat the consensus of $145.64B. Its cloud business, Amazon Web Services, revenues came in worse than expected. AWS revenue was $21.4B (up 20% year-over-year), missing the expected $21.9B.

For Q1/23, the company anticipates revenue in the range of $121B-$126B, compared to the consensus of $125.1B.

Starbucks misses Q1 as China sales drop 29%

Starbucks (NASDAQ:SBUX) shares fell more than 2% premarket today after the company reported Q1 results, with comparable sales missing the Street estimates as weak performance in China offset strong sales in North America.

Q1 EPS came in at $0.75, worse than the consensus of $0.77. Revenue grew 8% year-over-year to $8.7B, compared to the consensus of $8.78B.

North America and U.S. comparable store sales increased by 10%, while International comparable store sales and China comparable store sales fell by 13% and 29%, respectively.

Qualcomm plunges on Q1 EPS miss & weak guidance

Qualcomm (NASDAQ:QCOM) shares fell more than 3% premarket today after the company reported its Q1 results, with revenue coming in at $9.46B (down 12% year-over-year), missing the consensus of $9.6B. EPS was $2.37, slightly better than the consensus estimate of $2.36.

For Q2/23, the company expects EPS in the range of $2.05-$2.25, compared to the consensus of $2.26, and revenue in the range of $8.7B-$9.5B, compared to the consensus of $9.55B.

Liz Moyer and Yasin Ebrahim contributed to this report.

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