Tech stocks continue to impress, Apple’s Q1 results beat expectations

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Apple earnings

A lot of tech companies have already reported their Q1 2021 results. In general, most stocks have managed to impress Wall Street analysts, if not blow past their expectations. Apple (NASDAQ: AAPL) just reported its own Q1 figures on Wednesday, which somehow managed to beat already sky-high expectations for the company. The company saw a historic rise in sales for this quarter as new models of the iPhone 12 continue to remain popular among buyers.

Apple reported a net profit of $23.6 billion for the quarter, while revenues have shot up by 54% to $89.6 billion. That’s well above what even the most optimistic analysts were expecting. Apple also announced it would be raising its dividend by 7%, while full-year profits are estimated to come in at above $70 billion if not almost $100 billion.

We feel very good, given the results we’ve had in the first half of our fiscal year,” said Apple CFO Luca Maestri in an interview on Wednesday. “And clearly as economies start to reopen, particularly those economies where there are enough vaccines, obviously we think that should be a positive.”

The company said that it still expects strong double-digit growth rates in the future. Despite last year and the circumstances, Apple did reasonably well thanks to its new iPhone 12. Now that the economy is expected to open up reasonably soon, some expect iPhone sales to see a surge. For more expensive items, like iPhones and MacBook’s, they tend to require more in-person customer interaction before a purchase is made. This expected increase in business, alongside a few other reasons, is why Apple could have its best business year in history.

While there are some potential hiccups for Apple, like ongoing lawsuits for various issues, the general consensus in the markets is that no matter what happens, Apple will do just fine going into 2021 and beyond.

Shares of Apple are up around 2.8% in response to the news. Most big tech companies have done incredibly well so far, according to their Q1 results. We’ve seen Tesla (NASDAQ: TSLA) and Google (NASDAQ: GOOG) report their own results earlier, which both managed to blow past expectations. While the last earnings quarter was already a great one, Q1 2021 is poised to be even better. Keep your eyes out for some more tech stocks reporting their results on Thursday and Friday.

 

Apple Company Profile

Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple’s total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card, and Apple Pay, among others. Apple’s products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services. Apple’s products are distributed online as well as through company-owned stores and third-party retailers. The company generates about 40% of its revenue from the Americas, with the remainder earned internationally. – Warrior Trading News

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