Apple revenue falls 9% in Q4 earnings report, iPhone, iPad, Mac sales down year-over-year
Pandora grows revenue 13 percent in Q3 earnings report, but lowers guidance and remains in the red, leading investors to take the stock lower in after-hours trading
This website has been tracking Apple earnings since late 2010 for the simple reason that it was thought that iPad sales were that important – as the tablet market grew, so too would the market for digital editions. Or so the thinking went. But sometime in 2012 or 2013 Apple gave up on the Newsstand, took its time killing it off, and so iPad sales were no longer so important. Oh, and they have been falling for 10 quarters, as well.
Well, Apple reported its fourth quarter earnings (the October through December quarter is Q1 2017 for Apple) and they came in right around where analysts had forecast, with revenue at $46.9 billion, and EPS at $1.67 per share, versus expectations of $1.65. Oh hum.
iPad sales fell again, to 9.2 million units, but (if you are looking for some good news) the decline was not nearly as steep as previous quarters have been – and 9 million in sales is something other tablet makers would certainly think is pretty damn good.
For observers of Apple, however, they are going to want to hear from CEO Tim Cook what he has planned for the holiday season. iPhone sales are down for the 3rd quarter in a row, a trend that may well continue since it has been a while since the company did anything that looked like what would be expected from a market leader.
In fact, what is kind of sad about this quarter’s report is that Apple played up its services revenue. Really. For a company that produces iPhones, iPads and Macs, services is not what you want to see in the headline.
Here is the segment report, with plenty of negative numbers over there on the right hand side of the ledger:
Apple stock is down in after-hours trading.
It’s funny how some companies just can’t catch a break when it comes to what analysts want. Pandora is one of those.
Revenue climbed 13 percent to $351.9 million, Great news, right? Yeah, well, investors are taking the stock down over 5 percent in after-hours trading.
I’m not a fan of Pandora, preferring Spotify, for the same reason most people have – they want to control the music. But I know people who like Pandora, especially those who just want to hear new music, and often forget the names of artists. I know that when I used Pandora, before other services lured me away, this was a good way to learn of an obscure band.
But the company is still in the red, losing 7 cents a share. Worse, they have appeared to lower their guidance, not something investors will look kindly on.