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The One Key Thing From Apple’s Earnings Beat

Dear Rundown Reader,

Another day, another earnings report.

Tuesday marked Apple’s highly anticipated earnings call.

Many questions were answered.

And the most important takeaway regarding the company’s future was revealed.

Today we break down exactly how Apple crafted its surprise earnings beat.

Your Rundown for Wednesday, May 2, 2018…

Apple Shines On Earnings

Apple (NASDAQ: AAPL) shares are on the rise after a surprise earnings beat Tuesday.

The running narrative leading up to AAPL’s call was sluggish iPhone sales would damper an otherwise strong quarter.

Sure, iPhone X sales didn’t meet expectations.

Yes, the smartphone market continues to get more competitive.

But they still managed to sell 52.2 million iPhones over the past quarter.

That’s pretty darn good.

AAPL reported earnings per share of $2.73, beating consensus estimates of $2.67, according to Reuters.

Revenue topped $61.1 billion, also beating expectations.

Not too shabby.

It was exciting watching the stock run up after hours yesterday, as Apple executives reeled off the numbers.

You could almost hear the “cha-chings” as the stock rose from its close of $169.10 Tuesday, to its current premarket price of $175.20. Here’s the chart.

But the real reason for AAPL’s beat is something most folks probably overlooked during yesterday’s call.

There are two words you need to get very familiar with in 2018: Emerging markets.

AAPL revenues surged in this area and is the key reason why the company posted such stellar numbers overall.

According to AAPL executives, the company recorded 24% growth year-over in emerging markets.

This includes 21% year-over growth in China alone.

Once again the Red Dragon comes into play.

Are you noticing a theme?

Our income expert Mike Burnick, investment expert Greg Guenthner, and us at the Rundown have said it time and time again.

There’s big money in emerging markets.

According to the Bureau of Economic Analysis, the global economy grew by 3.5% in 2017, but the U.S. badly lagged the rest of the world with a mediocre 2.3% GDP growth rate.

And according to Mike Burnick, “China’s economy is expected to grow 6% per year on average for the next decade.”

When a company like AAPL taps into this kind of growth the money pours in and shareholders reap the benefits.

China and other emerging markets…

It’s one of the biggest trading stories of the year.

And these markets, tied to the right companies, can produce tons of profit chances for you.

Now, turning to the markets this morning…

Market Rundown for Wed., May 2

S&P 500 futures are down 2.50 at 2,649.

Oil’s up $0.15 to $67.40.

Gold’s up $4.20 at $1,311.

Bitcoin goes for $9,062 this morning, according to CoinDesk.

We’ll talk again tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the Publisher of Seven Figure Publishing. He's been researching and writing about technology and markets for over a decade and is a graduate of Penn State and Johns Hopkins.

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