The rate of growth is accelerating
$Apple (AAPL.US)$ The acceleration thesis
1. Top level velocity (revenue)
- YoY growth: +1,565 bps (+15.65%)
- context: last years Q1 growth was only +395 bps. That is a +1,170 bps acceleration in growth rate year over year. The machine is speeding up.
- QoQ growth: +4,029 bps (+40.29%)
- context: seasonal holiday spike, obviously. But massive volume.
2. Bottom mark power (eps)
- YoY growth: +1,833 bps (+18.33%)
- context: last years Q1 EPS growth was +1,009 bps. This is an +824 bps acceleration in profit growth velocity.
- QoQ growth: +5,351 bps (+53.51%)
- context: operational leverage is kicking in. Margins are expanding as revenue scales.
3. The “surprise” factor (Beat magnitude)
- EPS Beat: +677 bps (6.77% above consensus)
- revenue beat: +409bps (4.09% above consensus)
The narrative
The market was pricing in a mature, slow growth utility. What they got today was a growth stock multiple.
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