Fast Money Blog, Special Earnings Edition 7/28/21
This has been a big week as several major companies have posted their quarterly earnings.
Today, we are looking closer at 3 of them whose earnings were released on Tuesday, July 27th:
Apple, Inc. (AAPL) reported top line revenue for Q3 2021 of $81.4 billion, up 36% year-over-year. iPhone sales were up nearly 50% year over year with $39.5 billion in sales helped by the release of the 5G iPhone 12. Sales of Macs came in at $8.2 billion, up 16% year-over-year.
You always heard me complain about the growth of Apple’s service sector. Just a reminder that the service sector is where they bill you for things like data, video and photo storage.
Guess what? Apple saw explosive growth in the service sector for this quarter.
The Service sector, which includes Apple TV+, Apple Music and iCloud services, brought in $17.5 billion during the quarter, up 33% year-ago. Apple now has more than 700 million paid subscriptions to their paid services, which is up 150 million from last year, and is four times the number of subscriptions that Apple had four years ago.
Microsoft Corp. (MSFT) released Q3 2021 earnings with top-line revenue of $46.2 billion, an increase of 21% year-over-year.
Segments broke down like this:
The More Personal Computing unit, which includes Windows, gaming, devices and search, had $14.1 billion in revenue, up 9% year-over-year.
The Intelligent Cloud segment, which includes server, and enterprise products and services, had revenue of $17.4 billion, up 30% year-over-year. The high point was Azure's revenues, which surged 51% year-over- year.
In the productivity and business processes segment, which includes Office, Dynamics and LinkedIn, revenue came in at $14.7 billion, up 25% year-over-year. Microsoft 365 consumer revenue increased 18% year over year, while Microsoft 365 commercial revenue was up 20% year over year.
Advanced Micro Devices, Inc. (AMD) announced revenue for Q2 2021 of $3.4 billion, up 99% year-over-year and 12% quarter-over-quarter.
The company attributed the growth to strong performance companywide and particularly in the Computing and Graphics segment and the Enterprise, Embedded, and Semi-Custom segment.
Computing and Graphics segment revenue was $2.25 billion, up 65% year over year.
Enterprise, Embedded and Semi-Custom segment revenue was $1.6 billion, up 183% year-over-year and 19% quarter-over-quarter. The year-over-year increase was driven by higher semi-custom product sales and EPYC processor revenue.
If this kind of revenue growth continues, I see Advanced Micro Devices, Microsoft, and Apple shares all increasing 50% within the next 24 months.
Happy Trading and Investing!
Tyrone Jackson
The Wealthy Investor