Apple reports lukewarm quarter; Amazon soars in Q2 

According to the Associated Press, Apple reported slightly higher profit last quarter even though sales dipped during the period, a showing that may not be enough to sustain investor enthusiasm. The results released Thursday covered April through June.

Apple also indicated revenue for the current July through September quarter is expected to decline, despite the anticipated release of the next iPhone. The disappointing forecast, coupled with the lukewarm results for the past quarter, caused Apple’s stock to fall 2% in Thursday’s extended trading.

Revenue for Apple’s most recent quarter totaled $81.8 billion, down 1% from last year. Profit edged up 2% from a year ago to $19.9 billion, or $1.26 per share. The earnings were better than the $1.20 per share projected by analysts polled by FactSet Research, while revenue matched analyst forecasts; however, iPhones sales — the product segment watched most closely by Wall Street — fell 2% from a year ago to $39.7 billion, below analysts’ predictions.

Apple’s performance capped a succession of mostly positive quarterly reports from Big Tech companies regaining their stride after stumbling through much of year.

Amazon, conversely, on Thursday posted better-than-expected revenue and profits for the second quarter, sending its stock higher in after-hours trading, the Associated Press reports. The e-commerce giant earned $6.7 billion, or 65 cents per share, for the three-month period that ended June 30, much higher than the $3.64 billion industry analysts surveyed by FactSet had anticipated.

The company, which has been on a cost-cutting spree over the past few months, said overall revenue was $134.4 billion, up 11% from the same period last year and beating analyst expectations of 8.5% growth.

Amazon’s cloud unit AWS, which has been closely watched by investors, posted $22.1 billion in revenue. AWS grew by 12%, slower than 16% in the first quarter and 33% during the same time last year. Meanwhile, Amazon’s flagship online retail business, which had slowed dramatically following a boom earlier in the pandemic, grew 5%, its best showing since the third quarter of last year. Amazon’s physical store sales, which includes its Amazon Fresh and Go stores as well as Whole Foods, grew 7%.

The company said it expects to earn between $138 billion and $143 billion in revenue during the third quarter.