Earnings season is in full swing with some of the top tech companies releasing earnings this month. Apple (NASDAQ:AAPL) recently reported its quarterly results and its revenue grew 9% year-over-year. However, investors were expecting better numbers and it led to a fall in AAPL stock by 4%. Further, chief financial officer Luca Maestri also warned of the challenges in this quarter and the supply chain constraints that can hurt sales by up to $8 billion. It is also suffering from Covid-19 related lockdowns in China and the suspension of services in Russia.
Apple reported revenue of $97.28 billion with an earnings per share of $1.52. iPhone revenue stood at the top with $50.57 billion while the services revenue was $19.82 billion. Apple has done better than estimated but it did not help AAPL stock. It is down by 11% in the past month and has gone from $178 to $157 today.
I believe investors were looking for stellar numbers and solid guidance for the current quarter but the company did not provide any official revenue guidance. Additionally, it also announced a $90 billion share buyback. It has increased the dividend by 5 cents to 23 cents per share but investors are still not happy with it. I believe the current dip is a great chance to add the stock to your portfolio. Besides the dividend, it has massive potential to grow once the supply chain issues are settled. You may not see a rebound anytime soon due to global headwinds but Apple is not one to sit back and do nothing. It will bounce back and be at the top of its game in the coming months. The iPhone revenue numbers are proof that the company’s smartphone business remains strong and steady.
My InvestorPlace colleague Faizan Farooque had already recommended waiting for the post-earnings dip to buy the stock and now is the time to strike. The second quarter may have been good enough but this quarter might not be the same. Several hurdles will impact the revenue numbers and the company might lose some sales permanently. However, AAPL stock is a long-term buy and hold.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
