Apple Shares Dip On Weak Sales Outlook
Shares of Apple Inc. (NASDAQ: AAPL) declined more than 7 percent in after-hours trading, despite the company reporting better-than-expected results for the third quarter. The company's weak revenue forecast for the fourth quarter exerted pressure on the shares.
The Cupertino, California-based company posted a quarterly profit of $10.68 billion, or $1.85 per share, versus a year-ago profit of $7.75 billion, or $1.28 per share.
Its revenue climbed 32.5 percent year-over-year to $49.61 billion. However, analysts were expecting earnings of $1.81 per share on revenue of $49.31 billion.
The average estimate among 602 Estimize users was for earnings of $1.86 per share and revenue of $49.59 billion.
Japan revenue climbed 9 percent, while Americas revenue gained 15 percent. Europe revenue climbed 19 percent in the quarter.
Sales of iPhones jumped 59 percent to $31.37 billion. Apple sold 47.5 million iPhones in the latest quarter, up 35% versus the year-ago period.
Apple iPad unit sales slipped 18 percent year-over-year to 10.9 million, while Mac unit sales rose 9 percent to 4.8 million in the quarter.
Its gross margin widened to 39.7 percent in the latest quarter, versus 39.4 percent in the year-earlier quarter.
The company's board of directors has declared a cash dividend of $.52 per share.
"We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch," said Tim Cook, Apple's CEO. "The excitement for Apple Music has been incredible, and we're looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall."
For the current quarter, the company projects revenue of $49 billion to $51 billion, versus analysts' estimates of $51.13 billion. It also projects gross margin of 38.5 percent to 39.5 percent.
Apple shares fell 7.41 percent to $121.06 in the after-hours trading session.
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