Scout Daily Update: Apple Inc. (AAPL) Revenues Decline Again

STOCK NEWS

Juniper Networks, Inc. (NYSE:JNPR): reported Q3 EPS of $0.58 which beat estimates by $0.06. Revenue of $1.28 billion was up by 2.4% year-over-year, beating estimates by $30 million. CFO Ken Miller stated “We delivered solid profitability and continued to generate strong cash flow from operations, with meaningful sequential improvements across key performance metrics: earnings per share, operating margin and operating income.”

Akamai Technologies, Inc. (NASDAQ:AKAM): reported Q3 EPS of $0.68 which beat estimates by $0.07. Revenues of $584 million were up by 6% year-over-year, which beat estimates by $12.13 million. Performance and Security Solutions revenues were $345 million which was up by 19%. Cloud Security Solutions revenue was $95 million which was an increase of 46% year-over-year. Media Delivery Solutions revenues were $188 million which was down by 14% year-over-year. Services and Support Solutions revenues were $51 million, up by 17%.

oneinchpunch/Shutterstock.com

Apple Inc. (NASDAQ:AAPL): reported Q4 EPS of $1.67 which beat estimates by $0.02. Revenues were $46.9 billion which was down by 8.9% year-over-year and in-line which estimates. Net income of $9 billion was down from $11.1 billion year-over-year. iPhone volumes were 45.5 million which was up by 15% from last quarter and down by 5% from last year. iPad volumes were 9.2 million units which was down by 7% from last quarter and down by 6% year-over-year. Mac sales were 4.88 million which was up by 15% from last quarter and down by 14% year-over-year. Services revenue was $6.3 billion which was up by 6% quarter-over-quarter and up by 24% year-over-year. Other Products revenue was $2.3 billion which was up by 7% quarter-over-quarter and down by 22% year-over-year.

Chipotle Mexican Grill, Inc. (NYSE:CMG): reported adjusted EPS of $0.56 which missed estimates by $1.03. GAAP EPS was $0.27. Revenue was $1.04 billion which was down by 14.8% and missed estimates by $50 million. Comparable sales were down by 21.9%. Comparable transactions were down by 15%. Restaurant-level operating margins fell from 28.3% to 14.1%.

ECONOMIC NEWS

Services PMI rose to an 11-month high, reaching 54.8. New orders were the highest in 2016. There was an extraordinary increase in government spending which caused this metric to spike up along with the manufacturing PMI. This PMI leads us to believe the economy will grow by 2% in the fourth quarter. However, given that some data points are weak, the results will likely be much lower.