The holidays for Apple Inc. (Nasdaq: AAPL) — historically its most critical sales period — proved resilient once again based on its fiscal Q1 performance metrics published directly from the technology juggernaut itself in February.
By notching total revenues of $119.6 billion, the 2% year-over-year lift superseded company forecasts.
Stronger still, twin engines iPhone and iServices carried corporate momentum despite conflicting reports of consumer stress amidst stubborn inflation and fears of protracted recessionary pressures worldwide.
Specifically within the earnings announcement figures, Apple called out “all-time revenue records” for both its all-important services ecosystem — spanning offerings including App Store, Apple Music, and iCloud storage solutions — and the adjacent wearables division housing products like Apple Watch and AirPods.
As Apple continues diversifying from reliance strictly upon iPhone cycles into recurring software and services subscriptions augmented by wearables, the underlying business gains stability via these higher margin segments.
Apple Rates Green On the Green Zone Power Ratings System
Apple’s Green Zone Power Rating presently sits at 66, qualifying the stock as “Bullish,” meaning we expect the stock to outperform the broader market by 2X over the next 12 months.
Apple Inc. (AAPL) Green Zone Power Rating as of February 2022.
The stellar Quality pillar recognizes tremendous free cash generation, buttressing substantial share buybacks.
The 95 on Quality is highlighted by Apple’s return on equity of 154.3% compared to its industry peer average of just 3%. Additionally, AAPL’s return on investment is 59%, while the communication equipment industry average is minus-1.1%.
Its 93 on Growth is based on a 16% increase in earnings per share quarter-over-quarter along with the 2% jump in sales during the same period.
Apple’s overall rating is hurt by a 1 on Size. This is due in large part to its $2.8 trillion market cap.
The stock also scores a “Bearish” 15 on Value due to a price-to-book value ratio that’s more than 10 times higher than the industry average.
Bottom line: Apple results indicate Tim Cook & Co. delivered solid returns for holiday shoppers despite supply uncertainties and cost turmoil other giants like Amazon or Walmart partly blamed disappointing quarters on.
If the globally revered technology brand that touches billions daily worldwide can circumvent turbulence, then market confidence has a license for optimism as 2023 progresses.
But generated by halo hardware or flourishing software, Apple’s rare scale requires unrelenting innovation across all vectors from foldable devices to healthcare applications to warrant sustained excellence defying odds… and critics.