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28th Jan 2022. 10.37am

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Apple (AAPL) quarterly trading update

Apple post record revenue despite supply crunch

Apple reported record sales in the holiday quarter yesterday evening…

The tech behemoth beat estimates as it benefited from high iPhone demand in China despite continued supply chain constraints and Omicron variant disruptions.

With few rival phones debuting in the holiday shopping season, the iPhone 13 delivered sales of $71.6 billion, a 9% increase from the 2020 holiday season.

The company’s overall fiscal first-quarter revenue was $123.9 billion, 11% up from last year and higher than analysts’ average estimate of $118.7 billion.

Profit was $34.6 billion, or $2.10 per share, compared with analysts’ expectations of $31 billion and $1.89 per share.

Fundamentals

Just like Apple’s products, you tend to get what you pay for when it comes to stock selection and Apple don’t come cheap…

The shares are trading on a punchy forward PE multiple of 27.1, one of the highest in its sector.

This earnings multiple also looks expensive when compared against Apple’s single-digit forecast earnings per share (EPS) growth of 4.2%.

Technicals

Apple’s recent price action comes straight out of the technical analysis textbooks…

After a stellar 2021, the shares formed a classical ‘double-top’ reversal during New Year trading, and the shares have been retracing lower ever since…

The retracement phase has taken prices back down the September swing highs – an area that we would expect to provide support, especially given Apple’s long-term uptrend.

Should today’s price action break and close above the descending retracement line, it could well setup a retest of the New Year highs.

AAPL Daily Candle Chart

AAPL Daily Candle Chart

Disclaimer:

This research is prepared for general information only and should not be construed as any form of investment advice.