Apple Stock Drops After Split Q2 Earnings Result
- Apple 2Q revenue $52.9B versus $53.1B expected
- Sold 50.8M iPhones in 2Q versus a 51.4M estimate
- Most firms’ results have beat forecasts this season
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Apple (AAPL) stock received a moderate boost, then sharply fell after the company’s second-quarter earnings crossed the wires showing a mixed result. The company showed revenue of $52.9 billion, which fell below estimates of a $53.1 billion result. It also sold less iPhones than the previous quarter.
However, the news was not all negative for investors as AAPL showed earnings per share (EPS) of $2.10, beating the $2.02 expectation. The stock rose slightly in after-hours trading, then fell by as much as 1.63 percent as the market digested the outcome.
With markets now slightly past the earnings season’s halfway point, most US companies’ results have impressed relative to expectations. Nearly 76 percent of companies that released results through April 28beat analysts’ EPS estimates.
This may be worth noting as the spotlight turns to the FOMC monetary policy announcement. Fed officials keep an eye on the stock market as a measure of overall market sentiment and typically shy away from tightening when risk appetite sours. Alternatively, an upbeat mood may help clear the way for a June hike.
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