Apple, Inc. (NASDAQ: AAPL)
All eyes were on Apple earnings late Tuesday and the smartphone maker did not disappoint its investors, thanks to its upbeat third-quarter earnings and revenue.
The tech company had been expected to report another modest increase in iPhones sales, and easily pulled it off with a sales jump of 14%.
Following the earnings report, shares of the iPhone maker added $6.51, or 3.42% to trade at $196.80 having ended the regular session at $190.29.
AAPL Earnings & Outlook
Apple reported earnings of $53.3 billion, or $2.34 per share, compared with analyst expectations of $2.18 per share.
Revenue came in at $53.3 billion, above analyst consensus of $52.3 billion, according to figures compiled by Thompson Reuters.
The company generated a revenue of $29.9 million from the 41.3 million iPhones units it dold during the quarter.
Analysts were expecting it to generate $29.1 billion in revenue by selling 42 million iPhones.
The average selling price of iPhone devices during the quarter was $724, above average estimate of $693.
Apple services business, which consists of App Store, iCloud, and Apple Music, jumped 31% from the same period last year to $9.54 billion.
Apple lifted its fourth-quarter net sales to between $60 billion and $62 billion, ahead of analyst predictions of $59.47 billion. Mac sales dropped 13% on year-over-year basis.
Apple Company Comments
“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth. Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline,” said Tim Cook, Chief Executive Officer of Apple.
Chief Financial Officer Luca Maestri also commented on the results saying, “Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion. We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases.”
Apple, Inc. Company Profile
Apple, Inc. is involved the design, manufacture, and sale of mobile communication, personal computers, portable digital music players, and media devices.
The company operates through the Americas, Japan, Europe, Rest of Asia Pacific, and Greater China geographical segments. The Americas segment covers both South and North America.
The Europe segment includes European countries, as well as the Middle East, Africa, and India.
The Greater China segment consists of Taiwan, China, and Hong Kong. The Rest of Asia Pacific segment covers Australia, as well as Asian nations not included in the reportable operating segments of the company.
Apple offers iPhone, a line of smart phones; iPad, a line of multipurpose tablets; and Mac, a line of portable and desktop personal computers, as well as operating systems, such as tvOS, iOS, macOS, and watchOS.
The company delivers and sells digital applications and content through the App Store, iTunes Store, Mac App Store, iBooks Store, Apple Music, and TV App Store.
It distributes its products through its online and retail stores, and direct-to-customer sales, as well as via third-party cellular network carriers, value-added resellers, retailers, and wholesalers.
The company was founded in 1976 by Stephen G. Wozniak, Steven Paul Jobs, and Ronald Gerald Wayne. Its headquarters are based in Cupertino, California. –Reuters
