Apple Stock Climbs as Third Quarter Revenue Beats Expectations
- Apple stock climbs just about $10 from $150 (+6.7%) in after-hours trade
- Third quarter revenue came out stronger at $45.41b versus $44.95b seen
- Earnings per share also beat estimates, coming in at $1.67 versus $1.57
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Apple shares (AAPL) rose about 6.7 percent in after-hours trade, climbing to just shy of $160 (up from $150), following the company’s third quarter earnings report. Revenue turned out stronger than expected, coming in at $45.41b versus $44.95b forecasted. But what about its profitability? Net income, which takes into account costs, amounted to $8.72b. This is lower than what was reported in the second quarter ($11.03b).
There were other aspects in in the financial statement that declined from Q2. Earnings per share topped estimates coming in at $1.67 versus $1.57 expected. However, this is down from $2.10. Iphone sales meanwhile failed to live up to expectations. The company sold 41.0m units, falling short of the 41.1m target. This was also less than what was sold in Q2 (50.8m units).
Apple’s CEO, Tim Cook, mentioned that revenue is up 7 percent year-over-year and that this was a third consecutive month of accelerating growth. He also noted that Q3 marked an all-time quarterly record for services revenue. Apple’s CFO, Luca Maestri, added that unit and revenue growth in all of their product categories drove a 17 percent growth in earnings per share.
Perhaps part of the reaction in Apple shares was a result of future growth estimates. Looking ahead, the company sees fiscal year fourth quarter revenue between $49b - $52b. This forecast includes a range that is an upgrade over what the prior estimate of $49.12b was.