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Apple Inc. 8-K Report, Financial Results (Feb 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 1, 2024
Period End
February 1, 2024
Security
AAPL
In the record · 2016–202610-K1010-Q338-K99

AAPL filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 99 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Aug ’22Aug ’22
  2. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 1, 2024. Cited figures are marked; the original filing is the authoritative source.

Apple reported fiscal Q1 2024 (quarter ended December 30, 2023) with total net sales of $119.6 billiona, up 2% year over year from $117.2 billion, and diluted EPS of $2.18, up 16% from $1.88.

The top-line growth was driven by iPhone, which rose to $69.7 billionb from $65.8 billion, and Services, which reached a record $23.1 billion, up roughly 11%. Management noted that the quarter contained 13 weeks versus 14 weeks in the prior-year period, so the underlying growth on a comparable-calendar basis was stronger than the headline figure suggests. Gross margin expanded to 45.9% from 42.97%, and operating income rose about 12% to $40.4 billion, indicating that margin expansion, not just revenue, drove the earnings improvement.

Cash generation remained strong, with operating cash flow of $39.9 billionc. Apple returned roughly $27 billion to shareholders during the quarter through $20.1 billion in buybacks and $3.8 billion in dividends, and it declared a quarterly dividend of $0.24 per share payable February 15, 2024. Balance sheet cash and marketable securities increased, and total shareholders' equity rose to $74.1 billion from $62.1 billion, reflecting retained earnings growth.

Commercial paper and current term debt were also reduced, while total cash and marketable securities remained very large relative to debt. Weaker areas included Greater China revenue, which fell about 13% to $20.8 billiond, and iPad and Wearables, Home and Accessories, which both declined year over year.

Management also highlighted the launch of Apple Vision Pro and reported an installed base of active devices above 2.2 billion. Investors should weigh the strong profitability and capital returns against the revenue softness in Greater China and hardware categories and the 13-week comparison effect.

02—Key points

Key Highlights

  1. Total net sales of $119.6 billion, up 2% YoY, with a 13-week quarter versus 14 weeks in the prior-year period
  2. Diluted EPS of $2.18, up 16% YoY, a new all-time high for the company
  3. Services revenue hit an all-time record of $23.1 billion, up about 11% YoY
  4. Gross margin expanded to roughly 45.9% from 43.0%, and operating income rose about 12% to $40.4 billion
  5. Greater China revenue declined about 13% YoY to $20.8 billion, a key area of weakness
  6. Operating cash flow of $39.9 billion; roughly $27 billion returned to shareholders via buybacks and dividends
  7. Quarterly dividend declared at $0.24 per share, payable February 15, 2024; installed base surpassed 2.2 billion active devices

03—Questions

Frequently Asked Questions

  1. Did Apple's revenue growth really slow this quarter?

    Headline revenue grew only 2% to $119.6 billion, but the fiscal 2024 first quarter had 13 weeks compared with 14 weeks in the prior-year quarter. Adjusting for that calendar difference implies stronger underlying growth, though the company did not quantify the adjustment in this filing.

  2. What drove the 16% increase in earnings per share?

    EPS growth came mainly from margin expansion rather than sales growth. Gross margin rose to about 45.9% from 43.0%, operating income increased about 12%, and diluted share count fell modestly from 15.96 billion to 15.58 billion, which added to per-share earnings through buybacks.

  3. Is Apple's Greater China weakness a concern for investors?

    Greater China net sales fell about 13% YoY to $20.8 billion, the largest regional decline in the quarter. The filing does not explain the cause, but this segment is significant for long-term growth, so investors should monitor it in future reports and in the earnings call commentary.

  4. How much did Apple return to shareholders, and is the dividend secure?

    Apple returned about $27 billion in the quarter, consisting of $20.1 billion in share repurchases and $3.8 billion in dividend payments. The quarterly dividend of $0.24 per share was declared and is payable February 15, 2024, to holders of record as of February 12, 2024, and is covered comfortably by quarterly operating cash flow of $39.9 billion.

04—Continue

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