Citi: Apple Stock Fell Because The iPhone Missed Its 'Whisper Number'

In a report published Wednesday, Citi analyst Jim Suva maintained a Buy rating on

, with a price target of $145. Apple reported better-than-expected June quarter results, but iPhone unit sales fell short of expectations. The company's quarterly sales of $49.61 billion were marginally ahead of the consensus expectations and its own guidance mainly due to higher-than-expected average selling price of the iPhone. The company's quarterly EPS, at $1.85, was higher than the consensus expectation of $1.81. The company reported gross margins of 39.7 percent with operating expenses of $5.6 billion. Apple's cash generation during the quarter was $15 billion, while shares repurchased and dividend paid during the quarter were $13 billion. While the iPhone unit sales at 47.53 million were up 35 percent year on year and above the Street expectation of 47 million units, they were below the whisper number of above 50 million units, analyst Jim Suva pointed out. In the report Citi noted that the average selling price of the iPhone, at $660, was above the consensus expectation of $634. The quarterly sale of iPad units, at 10.93 million, was up 18 percent year on year, while the sale of Mac units, at 4.8 million, was up 9 percent year on year. Apple expects to post September quarter revenue of $49-$51 billion and gross margin of 38.5-39.5 percent. The company's EPS for the September quarter is expected to be in the range of $1.73 and $1.89.