Apple (AAPL) edged past earnings views after the close, but shares fell modest. In addition to the iPhone maker, fast-casual restaurants Chipotle Mexican Grill (CMG) and Panera Bread (PNRA) and highly rated Edwards Lifesciences (EW) have reported. Panera earnings and sales topped, but Chipotle did even worse than expected. Edwards Life fell sharply on its sales miss and weak guidance.
Here are the details.
Apple
Estimates: Fiscal Q4 EPS down 16% to $1.65; revenue down 9% to $46.94 billion. Analysts expected Apple to sell 45 million iPhones, 5 million Mac computers, and 9 million iPads.
Prior Quarter: Q3 EPS fell 23% to $1.42 as revenue sank 15% to $42.36 billion.
Results: Q4 EPS of $1.67 on revenue of $46.9 billion. Apple shipped 45.5 million iPhones, 4.89 million Macs and 9.27 million iPads. Services revenue climbed 24% to $6.3 billion.
Outlook: Apple ses fiscal Q1 of $76 billion to $78 billion vs. estimates of about $75 billion. That would be a modest gain vs. $75.87 billion a year earlier.
Stock: Apple shares fell nearly 3% in after-hours action to 115, signaling a move below an alternate buy point of 116.28. Shares closed up 0.5% to 118.25 on the stock market today, the best close since early December 2015. Shares have rallied in recent months in anticipation that the worst was over and that the Apple iPhone 7, launched Sept. 16, will do better than expected. Samsung's cancellation of its Galaxy Note 7 phone after reports of explosions should help the iPhone. Apple cleared a 110.33 buy point on Sept. 14 and continued to move higher. Apple then topped an alternate buy point of 116.28 earlier this month.
On Thursday, Apple unveils its latest Mac notebook and desktop computers.
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IBD'S TAKE: Buying stocks in the current choppy market environment is risky, but especially so during earnings season. IBD's Swing Trader now offers options on earnings.
Edwards Lifesciences
Estimates: EPS up 26% to 68 cents. Revenue should rise 12% to $749.48 million.
Results: EPS of 68 cents, sales of $739.4 million.
Outlook: Q4 EPS of 67-77 cents vs. views of 74 cents. Sales of $750 million-$790 million vs. estimates of $801 million.
Prior Quarter: EPS climbed 33% to 76 cents, the second straight quarter of accelerating growth. Sales expanded 23% to $759.3 million, with the gain accelerating for a third straight quarter.
Stock: Edwards Lifesciences fell 13% in after-hours action to 99 after tumbling 20% or more. Edwards closed down 2.9% to 113.65 after sinkng just below its 50-day line on Monday.
The stock has been extended from a 107.66 buy point. Edwards Lifesciences broke out on July 26, then shot up almost 6% the next day on its Q2 earnings results. Edwards continued to rise as the FDA and European regulators gave approval for expanded use of its Sapien 3 heart valve, its top product.
Chipotle Mexican Grill
Estimates: EPS down 65% to $1.59. Revenue down nearly 11% to $1.088 billion.
Results: Chipotle earned 27 cents a share, down 94%. Revenue fell nearly 15% to $1.04 billion, as same-store sales fell 21.9%.
Outlook: Chipotle sees Q4 same-store sales down in the low single digits, helped by easier year-earlier comparisons. It sees 2017 comps in the high-single digits, with EPS of $10. Analysts expected EPS of $9.88.
Prior Quarter: EPS tumbled 80% to 87 cents as sales skidded 17% to $998.38 million.
Stock: Chipotle initially jumped after hours but reversed to trade down more than 2% to 397. Shares closed down 1.9% to 405.67. The stock has been struggling to recover since a wave of food-borne illness outbreaks hit many locations across the country late last year. But the stock actually began selling off a year ago, when Chipotle reported slowing growth. Shares have moved sideways in recent months, but haven't been above their 200-day line in a year.
Chipotle has taken longer than many expected to regain lost customers. A summer rewards program, Chiptopia, was criticized for being both too complex and too generous. And Chipotle is trying to bounce back at a time when restaurants generally are struggling. Menu prices have risen much faster than the cost of cooking your own food, while rising labor costs further squeeze chains.
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Panera Bread
Estimates: EPS up 2% to $1.34. Revenue should climb about 2% to $680.5 million, which would be the smallest gain in seven quarters.
Results: Panera Bread earned $1.37 a share, up 4%. Sales rose 3% to $684.2 million. Company-owned same-store sales rose 3.4%.
Outlook: Panera sees full-year EPS of $6.67-$6.72, in line with views for $6.68.
Prior Quarter: EPS rose 11% to $1.78 as sales climbed 3% to $698.9 million.
Stock: Panera Bread rose 5% in after-hours action to 204.62. Shares closed down 2% to 194.56 Tuesday. After breaking out in early March, Panera shares moved sideways, with a series of failed breakouts along the way. But on Sept. 8, shares fell sharply below their 50-day moving average then undercut their 200-day line on Sept. 14.
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