Apple Earnings: Q4 Results Decent, But Questions Continue Into Q1 2025

Summary:

  • Apple reported Q4 2024 results that slightly beat estimates and provide some relief at face value following mixed reports about the iPhone 16 launch.
  • China’s performance has improved, but continued to underwhelm, and it remains questionable where a growth spurt could come from.
  • At a PEG of 3.5x, AAPL stock remains incredibly expensive. There are defensible qualities that have value, but I cannot reach a fair value above $215.

Girl chopping apple

Justin Lambert/DigitalVision via Getty Images

As those who follow my account will know, I generally stay clear of writing on mega-caps. That’s largely due to my desire to offer readers unique value in my writings, and most mega-cap stocks have already been analyzed

(in $ billions) Q4 2024

Q4 2023

y/y

change

Q3 2024 Sequential Change
iPhone $46.22 $43.80 +5.5% $39.30 +17.6%
Mac $7.74 $7.61 +1.7% $7.01 +10.4%
iPad $6.95 $6.44 +7.9% $7.16 (2.9%)
Wearables, H&A $9.04 $9.32 (3.0%) $8.10 +11.6%
Services $25.0 $22.31 +12.1% $24.21 +3.3%


Analyst’s Disclosure: I/we have a beneficial short position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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