Microsoft, Apple and Facebook report big gains for their Q3 2021 revenue reports. Their earnings surprised many when they exceeded analysts' estimates. All three also predict increased earnings and stocks growth for the next quarter.
Many industries seem to have stabilized despite the ongoing crisis, as seen with Microsoft, Apple and Facebook's performance. Investors were shocked to see huge growth rates comparable to pre-pandemic 2018 markets. CNBC reported the revenue growth for all three companies.
Microsoft Stock Earnings Report 22% Growth
Last Tuesday, Microsoft shares grew two percent higher after the company reported its first fiscal quarter earnings. All the numbers exceeded Refinitiv analysts' estimates by a significant margin.
In highlight, the company earnings were $2.27 per share, which is $0.2 higher than the $2.07 analyst prediction. The company revenue was $45.32 billion, which was $1.35 billion higher than the $43.97 billion analyst prediction.
The total company revenue rose by almost 22 percent year over year, which is the fastest growth rate it experienced since the 2018 revenue at 21 percent. Microsoft reported its net income at $20.5 billion, growing 48 percent.
Microsoft predicted that its fiscal second-quarter revenue might drop between $50.15 billion to $51.05 billion. The overall prediction passed the $48.92 billion consensuses among analysts in Refinitiv.
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Apple Earnings Skyrocket Despite Supply Shortage Problems
With its iPhone 13 and 2021 iPad selling intensively in the market, Apple broke past the Wall Street predictions on its third-quarter earnings. Its sales were initially at 36 percent in the second quarter but spiked to 50 percent on an annual basis. Unfortunately, its stocks dropped by 2 percent in extended trading.
Overall, Apple's revenue was reported at $81.41 billion, up 36 percent year over year. This is significantly bigger than the $73.3 billion Wall Street prediction. CNBC posted a breakdown of its revenue per segment with its respective forecast.
- iPhone revenue: $39.57 billion versus $34.01 (prediction)
- Mac revenue: $8.24 billion versus $8.07 (prediction)
- iPad revenue: $7.37 billion versus $7.15 (prediction)
- Services revenue: $17.48 billion versus $16.33 (prediction)
- Other Products revenue: $8.76 billion versus $7.8 (prediction)
- Gross margin: 43.3 percent verses 41.9 percent (prediction)
Apple said its sales would have been better if it did not suffer from supply shortages. This shortage caused a $3 to $4 billion loss in their earnings.
Facebook Stocks Focus on Increasing Earnings
Surprisingly, Facebook shares rose in extended trading last Monday. Investors might have seen its potential with its third quarter earnings and gains. The company also added $50 billion to its stock buyback program, which helped lift shares by 2 percent. Its quarter report is as follows:
- Earnings: $3.22 per share
- Revenue: $29.01 billion
- Daily active users (DAUs) 1.93 billion
- Monthly active users (MAUs): 2.91 billion
- Average revenue per user (ARPU): $10
It is worth noting that the company is busy with charges by Frances Haugen, a whistleblower, and former employee. CEO Mark Zuckerberg disputed that "the reality is social media is not the main driver of these issues and probably can't fix them by itself either. We should want every other company in our industry to make the investments and achieve the results that we have," per CNBC.
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