Apple Inc. beat fiscal first quarter profit estimates by four cents on Thursday evening while meeting revenue expectations and lowering second quarter guidance, triggering a buy-the-news reaction that evaporated ahead of Friday’s opening bell. The company reported year-over-year stagnation in quarterly iPhone, iPad and Mac shipments, raising questions about the icon’s long-term growth trajectory. Even so, results eased shareholder anxiety following multiple reports that the company had cut iPhone X production due to poor sales.
The company’s vast supply chain reacted positively to the news, with Skyworks Solutions, Inc ., Universal Display Corporation and other component makers posting modest gains. However, many of those issues had lost considerable ground in January due to the incessantly bearish news flow and need significant upside to recoup those losses. That recovery may not happen, given weak shipment metrics likely to dominate Wall Street analyst reporting in coming months. (See also: Why Apple’s Suppliers Are Plunging as Mega Tech Thrives.)
Apple stock is just above support generated by October’s dramatic breakout and needs to hold that line to maintain the long-term uptrend. …read more
Read more here: Apple Breakout at Risk After Earnings
Category: AAPL, OLED, SWKS