Apple, Intuitive Surgical and Tractor Supply reported their quarterly results a fortnight ago. While I skimmed through the results then, I have not read the transcripts to see the management’s sharing on their businesses. So time to do it now.
Let’s start with the easiest part which is simply the numbers.
Tough quarter for AAPL mainly due to forex and supply constraints (China covid-zero policy then). The bright spark is its increase in the revenue for Services segment which now accounts for 17% of its revenue. The Services segment is the primary reason when I first bought AAPL shares. It remains so as I continue to expect the installed base to increase. Apple ecosystem is sticky and I believe that there are many out there like me who does not look back after entering it.
In the presentation, Tim Cook said that the production is back what it needs to be, With the weakening of US dollars since the beginning of the year and re-opening of China, things should look brighter in a few quarters time.
ISRG’s quarter is mixed and like many other companies, she is affected by foreign exchange and zero covid policy in China during the quarter. Ion system is gaining traction but its contribution should still be relatively small as compared to the overall revenue. The uncertainty lies in the new quota for China and it looks like going to be a dull 2023 ahead.
The star for the quarter must be TSCO. The following video from the company summarised the achievements of the company over the past year.
Regular readers would know that leadership is one criteria that affects my investment decision. A good company blessed with a strong leader would become better. Hal Lawton has proven himself to be a good fit for Tractor Supply, and has brought it to a greater height since becoming the CEO three years ago.
It might be hard for us city dweller to imaging a business for rural lifestyle but it looks like there is a huge demand for that in US. Their “Life Out Here” strategy seems to be working and looks like there will be continued moderate growth going forward.
Excluding the bulk selling due to my draw down plan, I will continue to hold on to my current stake for all the three companies.