Apple Rises After Q3 Results Top Estimates

The world's largest technology company,

released its fiscal third-quarter earnings results on Tuesday after the closing bell. The company reported modest upside to Wall Street analysts' consensus earnings per share and sales estimates. In late trade, Apple shares were last up around 5 percent to $440.38.

“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple's CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.” “We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases,” said Peter Oppenheimer, Apple's CFO.

Apple reported net income of $6.9 billion or $7.47 per share, compared to $8.8 billion or $9.32 per share, in last year's corresponding quarter. This came in slightly ahead of consensus EPS estimates of $7.32. Revenue in the quarter was $35.32 billion, a very slight increase versus the $35.02 billion in sales Apple reported in last year's fiscal third-quarter. Wall Street analysts had been modelling sales of $35.01 billion heading into the report. iPhone sales in the period were 31.2 million versus 26 million last year. iPad sales fell to 14.6 million in the third-quarter compared to 17 million a year ago. Looking ahead to the fiscal fourth-quarter, Apple guided for revenue of $34 billion to $37 billion. This is below current consensus calling for Q4 revenue of $37.11 billion.