TRANSCRIPT:
Apple Inc., (AAPL), Q1 2019, Jan. 29, 2019
Call Time:
1/29/2019, 5:00pm
Transcript Analysis Time :
1/30/2019, 9:08am

We generated record December quarter services revenue in Greater China, fueled by an amazing ecosystem with over 2.5 million registered iOS developers. We saw very strong results from our Wearables business there with revenues up over 50%. We also continued to grow our total active installed base by adding new customers. In fact, more than 2/3 of all customers in China who bought a Mac or iPad during the December quarter were purchasing that product for the first time.

Finally, for perspective, despite the challenging December quarter, our revenue from China grew slightly for the full calendar year. Macroeconomic factors will come and go, but we see great upside in continuing to focus on the things that we can control.

Returning to iPhone, I'd like to talk about our results in the context of those lower-than-expected upgrades. iPhone XR, iPhone XS and iPhone XS Max are, by far, the best iPhones we've ever shipped. They share advanced technologies, including the A12 Bionic, the most powerful chip ever in a smartphone with our next-generation Neural Engine capable of 5 trillion operations per second. These are also completely modern iPhones with stunning large full-screen displays and Face ID, the most secure authentication of any kind available in a smartphone.

Now our customers are holding on to their older iPhones a bit longer than in the past. When you pair this with the macroeconomic factors, particularly in emerging markets, it resulted in iPhone revenue that was down 15% from last year. Our iPhone results accounted for significantly more than our entire year-over-year revenue decline. In fact, outside of iPhone, our business grew strongly by 19%.

Wearables Stood Out With Strong Demand

We generated record December quarter services revenue in Greater China, fueled by an amazing ecosystem with over 2.5 million registered iOS developers. We saw very strong results from our Wearables business there with revenues up over 50%. We also continued to grow our total active installed base by adding new customers. In fact, more than 2/3 of all customers in China who bought a Mac or iPad during the December quarter were purchasing that product for the first time.

Finally, for perspective, despite the challenging December quarter, our revenue from China grew slightly for the full calendar year. Macroeconomic factors will come and go, but we see great upside in continuing to focus on the things that we can control.

Returning to iPhone, I'd like to talk about our results in the context of those lower-than-expected upgrades. iPhone XR, iPhone XS and iPhone XS Max are, by far, the best iPhones we've ever shipped. They share advanced technologies, including the A12 Bionic, the most powerful chip ever in a smartphone with our next-generation Neural Engine capable of 5 trillion operations per second. These are also completely modern iPhones with stunning large full-screen displays and Face ID, the most secure authentication of any kind available in a smartphone.

Now our customers are holding on to their older iPhones a bit longer than in the past. When you pair this with the macroeconomic factors, particularly in emerging markets, it resulted in iPhone revenue that was down 15% from last year. Our iPhone results accounted for significantly more than our entire year-over-year revenue decline. In fact, outside of iPhone, our business grew strongly by 19%.

Apple Inc.
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Apple Inc., (AAPL), Q1 2019, Jan. 29, 2019
Apple Inc., (AAPL), Q1 2019, Jan. 29, 2019
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TRANSCRIPT:
General Electric Company (GE), Q4 2019, Jan 31, 2019
Call Time:
1/31/2019, 8:00am
Transcript Analysis Time :
1/31/2019, 2:07pm

Orders were $34.1 billion, down 1% reported and up 4% organically, with particular strength in equipment orders, up 7% organically, driven by Aviation commercial engines and renewable. The services orders were up 1% organically.

Equipment revenues grew 10%, and services were up 6% organically. Industrial profit margins were 7.5% in the quarter, down 150 basis points year-over-year on a reported and organic basis, driven by significant declines in Power and renewables.

For the year, margins were down 80 basis points organically. Industrial profit was down 16% in the quarter with Aviation, Healthcare and Baker Hughes GE all delivering strong profit growth, offset mostly by Power. Specifically, Aviation had another outstanding quarter and year, expanding total year margins while shipping over 1,100 LEAP engines.

Net earnings per share was $0.07, which includes losses from discontinued operations related to GE Capital. GAAP continuing EPS was $0.08, and adjusted EPS was $0.17. I'll walk the GAAP continuing EPS to adjusted EPS on the right side of the page.

Starting from GAAP. Continuing was $0.08 and we had $0.06 gains, principally from the sale of Distributed Power. And as you will recall, in the third quarter, we booked a $22 billion impairment charge related to Power goodwill based on our best estimate at that time.

Plenty of Questions, Few Concrete Answers

Orders were $34.1 billion, down 1% reported and up 4% organically, with particular strength in equipment orders, up 7% organically, driven by Aviation commercial engines and renewable. The services orders were up 1% organically.

Equipment revenues grew 10%, and services were up 6% organically. Industrial profit margins were 7.5% in the quarter, down 150 basis points year-over-year on a reported and organic basis, driven by significant declines in Power and renewables.

For the year, margins were down 80 basis points organically. Industrial profit was down 16% in the quarter with Aviation, Healthcare and Baker Hughes GE all delivering strong profit growth, offset mostly by Power. Specifically, Aviation had another outstanding quarter and year, expanding total year margins while shipping over 1,100 LEAP engines.

Net earnings per share was $0.07, which includes losses from discontinued operations related to GE Capital. GAAP continuing EPS was $0.08, and adjusted EPS was $0.17. I'll walk the GAAP continuing EPS to adjusted EPS on the right side of the page.

Starting from GAAP. Continuing was $0.08 and we had $0.06 gains, principally from the sale of Distributed Power. And as you will recall, in the third quarter, we booked a $22 billion impairment charge related to Power goodwill based on our best estimate at that time.

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General Electric Company (GE), Q4 2019, Jan 31, 2019
General Electric Company (GE), Q4 2019, Jan 31, 2019
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Merck & Co. Inc. (MRK), Q3 2018, Oct. 25, 2018
Call Time:
10/25/2018, 8:00am
Transcript Analysis Time :
11/11/2018, 1:00pm

But as it relates to being more specific and putting numbers around that and time periods at this time, we don't know that that's the right thing for us to do. We will continue to give guidance in the way that we normally do it on an annual basis. But I don't really think it makes sense for us today as we're seeing this business grow and expand for us to try to say a specific number in terms of what the margin expansion will be.

What i can tell you is that we will continue to work very hard to drive that margin expansion at the same time, making the right kinds of investments that we need to make to drive our growth over the next few years.

So on business development. Let me start by saying we're pleased with the way in which our business is growing now, particularly in the Oncology field. But that doesn't make us comfortable. At the end of the day, we know that we have to continue to build our portfolio and build on our pipeline.

Evasive Commentary Puts Margin in Doubt

But as it relates to being more specific and putting numbers around that and time periods at this time, we don't know that that's the right thing for us to do. We will continue to give guidance in the way that we normally do it on an annual basis. But I don't really think it makes sense for us today as we're seeing this business grow and expand for us to try to say a specific number in terms of what the margin expansion will be.

What i can tell you is that we will continue to work very hard to drive that margin expansion at the same time, making the right kinds of investments that we need to make to drive our growth over the next few years.

So on business development. Let me start by saying we're pleased with the way in which our business is growing now, particularly in the Oncology field. But that doesn't make us comfortable. At the end of the day, we know that we have to continue to build our portfolio and build on our pipeline.

Merck & Co. Inc.
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Merck & Co. Inc.
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Merck & Co. Inc. (MRK), Q3 2018, Oct. 25, 2018
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