Apple Stock Fell 2% on Q4 and FY ’23 Results, Price Downgrades

The Apple Inc (NASDAQ: AAPL) stock price fell 2.22% after the tech giant released its Q4 earnings results for the three months ended September 30, 2023. The company generated revenues worth $89.5 billion, marking a 1% decline from the previous quarter. This was the fourth quarterly revenue decline reported by the firm.

However, despite the decline, Apple’s Q4 revenues beat analysts' consensus estimates of $89.28 billion, with revenues from iPhone sales reaching a new record of $43.81 billion, while the company’s services division generated revenues worth $22.3 billion during the quarter, hitting a new record. 

Despite a nearly 6% year-over-year decline in quarterly sales, primarily driven by a significant 34% drop in Macbook computer sales, Apple reported impressive annual growth in net income, which increased by 11% to reach $23 billion.

In its 2023 fiscal year, ending in September, Apple reported a substantial profit of $97 billion. While this figure represents a 2.8% decline compared to the $99.8 billion recorded last year, it is essential to note that Apple was already the most profitable American company in 2022. 

The latest earnings results from Apple have triggered a series of analyst downgrades of the tech giant, citing its falling revenues and rich valuation. The company’s price target was lowered to $200 from $205 at Canaccord as the investment firm maintained a buy rating on Apple. 

Apple’s price target was lowered from $240 to $230 by Citi analyst Atif Malik as he also kept a buy rating on the shares. The analysts singled out the robust iPhone sales and the earnings beat driven by its higher gross margins on products and services as key drivers of the firm’s profitability. 

Apple did not share specific financial guidance for its fiscal Q1, as is typical, but analysts expect $123.1 billion in sales during the period and $32.4 billion in net income. 

Tim Cook, Apple’s CEO, said: “Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services. We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon-neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.” 

Apple stock price. 

The Apple stock price fell 2.22% to trade at $173.60 from Thursday’s closing price of $177.57.