Apple Inc. (NASDAQ:AAPL) earnings and sales surge

Apple Inc. (NASDAQ:AAPL) earnings and sales surge

Apple Inc. (NASDAQ:AAPL) earnings and sales surge

Apple Inc. shares ticked higher in aftermarket trading after the company posted record quarterly results for its holiday quarter Tuesday afternoon while easily topping expectations.

The star of the quarter was the iPhone, as revenue for the category exceeded the FactSet consensus by more than $4 billion. Apple AAPL, +2.83%  also saw strong performance once again from its wearables, home and accessories category, with revenue up 37% to $10.01 billion, another beat relative to the consensus view.

Strength in those two segments made up for a disappointing performance from the services business and helped carry Apple to record earnings and revenue. The company netted $4.99 a share for the quarter on revenue of $91.82 billion, whereas analysts had been calling for $4.54 a share in earnings and $88.48 billion in revenue.

Revenue from iPhones totalled $55.96 billion and made up more than half of the company’s overall sales once again, increasing more than 7% from a year ago. Analysts had been calling for $51.38 billion from the category. It was the second-highest quarterly iPhone revenue total in Apple’s history, behind its 2017 holiday quarter.

On the wearables side, Cook discussed how strong demand impacted availability of the Apple Watch and AirPods during the holiday period. Nonetheless, this marked the first quarter in which revenue for the category exceeded $10 billion.

Apple managed to improve its China performance in the recently completed quarter, growing sales to $13.58 billion, up 3% from a year prior. It marked a change in tone from a year ago, when the company blamed weakness in China and other emerging markets for its disappointing holiday-quarter results.

Though the services business was a high point of Apple’s results three months back, revenue for the segment fell short of expectations this time around, as Apple booked $12.72 billion in sales, below the $13.06 billion consensus.

Newly launched services such as Apple TV+ didn’t have much impact on the December-quarter results, executives said on the call, while providing additional information as to how the company accounts for deferred revenue around free trials of the service.

Apple shares have gained 27% over the past three months, as the Dow Jones Industrial Average DJIA, +0.66%, of which Apple is a component, has added 6.1%.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 290.82.

The projected upper bound is: 329.12.

The projected lower bound is: 308.39.

The projected closing price is: 318.75.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.6386. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.92. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 41. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 8.740 at 317.690. Volume was 46% above average (neutral) and Bollinger Bands were 26% wider than normal.

Open     High      Low     Close     Volume___
312.600 318.400 312.190 317.690 40,558,488
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 315.64 286.28 229.76
Volatility: 29 23 29
Volume: 32,976,050 28,702,120 27,598,066

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 38.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 110 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.