U.S. Movers: Apple, BMW, Starbucks

Scott Peters
03 Nov, 2023
New York City

Apple Inc. declined 1.7% to $174.51 after the maker of popular communication devices reported a decline in revenue for the fourth quarter in a row and forecasted weaker sales in the current quarter.

Revenue in the fiscal fourth quarter declined 1% to $89.5 billion from $90.1 billion, net income advanced to $22.9 billion from $20 billion, and diluted earnings per share rose to $1.46 from $1.29 a year ago.

Sales of iPhones increased to $43.8 billion from $43.6 billion, Macs plunged 34% to $7.6 billion from $11.5 billion, iPads eased to $6.4 billion from $7.2 billion, wearables fell to $9.3 billion from $9.7 billion, and services revenue jumped 16% to a record high of $22.3 billion from $19.2 billion a year ago.

Sales in the Americas edged up to $40.1 billion from $39.8 billion and edged slightly lower in Europe to $22.5 billion, in Greater China to $15 billion, in Japan to $5.5 billion, and in the rest of Asia to $6.3 billion.

For the full year, sales declined 3% to $383.3 billion from $394.3 billion.

The company's board of directors declared a cash dividend of 24 cents per share payable on November 13 to shareholders on record on November 10.

The company's installed base of devices reached a new record high across all products and all geographic segments, said chief financial officer Luca Maestri.

The company guided current quartet sales "to be similar to" the previous year, but the current year has one fewer week.

BMW AG jumped 3.1% to €93.91 after the company said production volume increased 4.2% to 638,524 vehicles in the third quarter.

Group revenue increased 3.4% to €38.5 billion from €37.2 billion, net income declined 7.7% to €2.9 billion from €3.2 billion, and earnings per share fell to €4.20 from €4.25 a year ago.

All electric vehicle sales in the quarter surged 79.6% to 93,931 units, accounting for 15.1% of total deliveries.

Starbucks Corp. extended 2-day gains to 13% after the coffee chain reported better-than-expected quarterly sales.

Revenue in the fiscal fourth quarter ending on October 1 increased 11.4% to $9.4 billion from $8.4 billion, net income advanced 38.3% to $1.2 billion from $878.3 million, and diluted earnings per share rose to $1.06 from 76 cents a year ago.

Global comparable store sales increased by 8%, driven by a 4% increase in average ticket sales and a 3% increase in comparable transactions.

North America and U.S. comparable store sales increased 8%, driven by a 6% increase in average ticket sales and a 2% increase in comparable transactions.

International comparable store sales increased 5%, driven by a 6% increase in comparable transactions and a 1% decline in average ticket sales.

In the second-largest market, China, comparable store sales increased 5%, driven by an 8% increase in comparable transactions and a 3% decline in average ticket sales.

The company continued its expansion and opened 816 net new stores in the quarter, ending the period with 38,038 stores, of which 52% are company-operated and 48% are licensed.