Apple’s earnings beat expectations as services revenue hits new high
Apple reported fiscal fourth-quarter earnings on Thursday that beat analyst expectations and delivered a strong forecast for its December quarter.
Shares of the iPhone maker remained flat in extended trading following the results, News.Az reports, citing CNBC.
For the quarter ending September 27, Apple posted earnings per share of $1.85, exceeding estimates of $1.77. Revenue came in at $102.47 billion, slightly above the expected $102.24 billion.
By business segment, iPhone revenue totaled $49.03 billion, compared with estimates of $50.19 billion. Mac revenue reached $8.73 billion versus $8.59 billion expected, while iPad revenue came in at $6.95 billion, just below the $6.98 billion estimate. Revenue from Other Products was $9.01 billion, surpassing the $8.49 billion forecast, and Services revenue climbed to $28.75 billion, ahead of the $28.17 billion estimate.
Apple’s strong results in services and other product categories helped offset slightly lower iPhone sales, setting a positive outlook for the company’s crucial holiday quarter.
Apple CEO Tim Cook told CNBC’s Steve Kovach that revenue in the current quarter will increase by at least 10%.
“We expect total company revenue to grow by 10 to 12% year over year, we expect iPhone revenue to grow double digits, year over year, and we expect that that would make the December quarter the best ever in the history of the company,” Cook said.
Analysts polled by LSEG expect Apple to guide to $132.31 billion in December quarter sales and earnings of $2.53 per share. Apple’s guide surpasses those expectations. With 11% growth over last year’s December quarter, revenue for the upcoming period would be $137.97 billion.
“We look at the results to date, the reception of the consumer on the very strong iPhone lineup,” Cook said. “We’re looking at traffic in our stores, which is up significantly year on year. We see enthusiasm around the world.”
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