Quarterly Results Recap
Over the weekend investors were certainly digesting the quarterly results from Magnificent Seven players Amazon (AMZN), Apple (AAPL), and Meta Platforms (META) last Friday. While Meta Platforms stood out by announcing its first-ever dividend during its earnings release, both Amazon and Apple were able to exceed their top and bottom line expectations. Let’s take a closer look at their performances and assess whether now is a good time to invest in these iconic tech giants.
Amazon’s Q4 Performance
Amazon reported Q4 earnings of $1.01 per share, surpassing the Zacks Consensus of $0.81 a share by 24%. Additionally, Q4 earnings soared 380% from the comparative quarter. Fourth quarter sales of $169.96 billion beat estimates by 2% and leaped 14% year-over-year. Amazon posted a net income of $10.6 billion, a significant increase from the previous year.
Apple’s Q1 Performance
Apple’s Q1 earnings of $2.18 per share were up 16% year-over-year, setting a new record high and topping the Zacks Consensus of $2.09 a share by 4%. Quarterly sales of $119.57 billion surpassed estimates by over 1% and rose 2% year-over-year. The company reported a net income of $33.92 billion, marking a 13% increase from the prior year quarter.
Deeper Analysis
Amazon attributed its robust Q4 results to a record-breaking holiday shopping season and observed significant growth in its North America and International segment sales. Meanwhile, Apple’s Q1 growth was fueled by strong iPhone sales and all-time revenue records in its Services segment sales. Both companies surpassed expectations and reported impressive figures, yet there are still considerations to weigh regarding their stock potential.
Stock Considerations
Following their favorable quarterly results, Amazon’s stock currently holds a Zacks Rank #2 (Buy), while Apple lands a Zacks Rank #3 (Hold). The trend of positive earnings estimate revisions looks likely to continue for Amazon, whereas investors may want to monitor Apple’s warning of softer iPhone sales during the current quarter despite the company’s immense potential.