(Bloomberg) – Apple shares posted their biggest gain since 2020 following reporting quarterly results that beat Wall Street’s expectations, marking the company’s victory over a supply chain crisis caused by the coronavirus and a shortage of chips.
Apple’s first-quarter sales rose 11 percent to a record $123.9 billion, compared with analysts’ average estimate of $119.1 billion. Profits also topped estimates for the quarter, with Apple forecasting double-digit sales growth in the March quarter.
Affected by this news,Apple Inc. (AAPL)It rose 7 percent to $170.33 on Friday, its biggest one-day gain since July 31, 2020.
Apple’s surprisingly strong performance proves that supply chain concerns are overblown. Apple Chief Executive Tim Cook warned late last year that supply shortages might cost the company more than $6 billion in lost sales during the crucial holiday season. But the tech giant weathered the crisis and benefited from a slew of new products like the iPhone 13, Apple Watch Series 7, and more.
“The performance report highlights the strength and stickiness of Apple’s ecosystem,” Morgan Stanley’s Katy Huberty wrote in a note to clients. She reiterated that Apple remains her top pick for 2022.
In the fiscal first quarter ended Dec. 25, Apple earned $2.10 a share, well above analysts’ estimates of $1.90.
On a conference call, Apple executives said supply chain constraints would ease further in the March quarter. The company didn’t give a specific revenue target, other than saying it would hit an all-time high for the same period. Analysts forecast revenue of more than $90 billion. Gross margins will reach 42.5% to 43.5%.
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Apple Gains the Most Since 2020 After Trouncing Estimates (1)
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