April 9, 2018

AAPL – Market expectations are for material declines in Uniform ROA, but management is confident in their capital allocation plans, the iPhone, and customer satisfaction


      • Apple Inc.currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 11.3x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their capital allocation plans, the iPhone, and customer satisfaction
      • Specifically, management generated excitement markers when discussing the year-over-year increase in average Mac sales per week, and when discussing their capital allocation plans. Additionally, they are confident in their record-high revenue of $88.3bn, up nearly $10bn or 13% over the prior record set last year. Finally, they are confident this growth was driven by double-digit revenue growth for the iPhone across all geographic segments despite the staggered launch of iPhone X, and in their high customer satisfaction ratings
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