Apple Inc (NASDAQ: AAPL) reported its fiscal third-quarter results after the closing bell Tuesday. The iPhone manufacturer beat analysts’ expectations on both the top and bottom line, pushing its shares up more than 4% in after-hours trading.
Sales in the Greater China region stood at $9.16 billion during the quarter, compared with sales of $9.55 billion in the earlier-year period. Sales in the Americas region came in at $25.06 billion versus sales of $24.54 billion in the prior-year period.
Apple said it paid out $3.6 billion in dividends during the quarter, and spent more than $17 billion on share buybacks of nearly 88 million Apple shares. Apple stock, which has risen 32% since the beginning of the year, gained $9.25, or 4.43% to change hands at $218.03 apiece.
AAPL Earnings & Outlook
Apple reported net income of $10.04 billion, or $2.18 per share during the three months ended June 29, 2019. On average, analysts were expecting adjusted earnings of $2.10 per share in Q3 2019, according to Refinitiv. The company reported net income of $11.52 billion, or $2.34 per share during the third quarter of the previous year.
Revenue came in at $53.8 billion in the quarter, compared with the same period last year when the company posted revenue of $53.27 billion. Analysts surveyed by Refinitiv had been calling for revenue of $53.40 billion in the quarter.
Apple generated $25.99 billion in iPhone revenue during the quarter, a 12% decline from revenue of $30 billion in the same previous period last year. Analysts were forecasting $26 billion in iPhone revenue in the third-quarter of the previous year.
Apple posted $11.46 billion revenue in its services, $5.02 billion in iPad revenue, and $5.82 billion in Mac revenue in the quarter. For the current quarter, Apple sees revenue of between $61 billion to $64 billion versus analysts’ estimates of $60.9 billion.
Apple CEO Comments
“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said Apple Chief Executive Officer Tim Cook in a press release.
“These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products,” Cook added.
Apple Inc Profile
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Watch), and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple’s total revenue.
In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, AppleCare and Apple Pay, among others. Apple’s products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services.
Apple’s products are distributed online as well as through company-owned stores and third-party retailers. The company generates about 40% of its revenue from the Americas, with the remainder earned internationally. – Warrior Trading News
