01—Abstract
Summary
Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Apple reported fiscal Q3 2024 (quarter ended June 29, 2024) with total net sales of $85.8 billiona, up 5% year over year, and diluted EPS of $1.40, up 11% from $1.26.
Services revenue reached a new all-time high of $24.2 billionb, up 14% year over year, and gross margin expanded to $39.7 billion (about 46.3% of sales) from $36.4 billion (about 44.5%). Operating income rose 10% to $25.4 billion, and net income grew 8% to $21.4 billion. Growth was driven by Services and iPad, partly offset by a 9% decline in Greater China revenue and a roughly flat iPhone line (down 1%).
Cash generation remained strong, with nearly $29 billionc of operating cash flow in the quarter and $91.4 billion for the nine months. Apple returned over $32 billion to shareholders in the quarter, including repurchases and dividends, and nine-month repurchases of $69.9 billion were the largest use of cash. Net cash and marketable securities remain substantial, though total debt is still elevated at about $101 billion.
Total shareholders' equity rose to $66.7 billiond as accumulated deficit and buybacks weighed on the balance sheet, and the active installed base reached a new all-time high in all geographic segments. Management highlighted the upcoming Apple Intelligence rollout as a key product initiative, and the board declared a quarterly dividend of $0.25 per share, payable August 15, 2024 to holders of record on August 12, 2024. This 8-K furnishes the earnings release under Item 2.02; the results are unaudited, and investors should watch the conference call for guidance and commentary on China demand and AI-driven product cycles.
02—Key points
Key Highlights
- Record June-quarter revenue of $85.8B, up 5% YoY, with diluted EPS of $1.40, up 11% YoY
- Services revenue hit an all-time high of $24.2B, up 14% YoY, and carries a gross margin of roughly 74% versus about 37% for Products
- Gross margin rose to $39.7B from $36.4B, lifting gross margin percentage to about 46.3% from 44.5%
- Greater China revenue fell about 7% YoY to $14.7B, the main regional drag, while Americas grew 6% and Europe grew 8%
- Operating cash flow of nearly $29B in the quarter; nine-month operating cash flow of $91.4B
- Shareholder returns exceeded $32B in the quarter, with nine-month buybacks of $69.9B and dividends of $11.4B
- Quarterly dividend of $0.25 per share declared, payable August 15, 2024 to holders of record on August 12, 2024
03—Questions
Frequently Asked Questions
How did Apple perform in fiscal Q3 2024?
Apple reported revenue of $85.8 billion, up 5% year over year, and diluted EPS of $1.40, up 11%. Net income rose to $21.4 billion and operating income to $25.4 billion, both up about 8% to 10%.
Which segments drove growth, and which lagged?
Services was the standout, growing 14% to a record $24.2 billion. Products grew about 2%, with iPad up 24% and Mac up 2%, while iPhone was roughly flat at $39.3 billion and Wearables, Home and Accessories declined about 2%. Greater China was the weakest region, down about 7%.
How strong is Apple's cash position and capital return program?
Apple generated nearly $29 billion of operating cash flow in the quarter and returned over $32 billion to shareholders. Cash and marketable securities totaled roughly $153 billion against about $101 billion of total term debt and commercial paper, leaving a substantial net cash position.
What is the dividend announcement?
The board declared a $0.25 per share quarterly cash dividend, payable August 15, 2024 to shareholders of record as of the close of business on August 12, 2024.
What should investors watch going forward?
Investors should focus on the earnings call for management commentary on Greater China demand, the commercial rollout and monetization of Apple Intelligence, and whether Services growth can sustain its pace as the company's highest-margin revenue line.
04—Continue