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Apple Easily Beats June-Quarter Views, Guides Sales Targets Higher

Consumer electronics heavyweight Apple (AAPL) late Tuesday easily beat Wall Street's estimates for its fiscal third quarter and guided higher for sales in the current period. The news sent its stock into record territory in extended trading.

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The Cupertino, Calif.-based company earned $2.34 a share on sales of $53.3 billion in the June quarter. Analysts expected it to earn $2.18 a share on sales of $52.34 billion for the period. On a year-over-year basis, earnings per share rose 40% and revenue increased 17%.

"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth," Chief Executive Tim Cook said in a news release. "Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline."

Apple shares rose 3% in after-hours trading near 196, which would be an all-time high on the stock market today if it holds into Wednesday trading. During Tuesday's regular session, its shares rose 0.2% to 190.29.

It sold 41.3 million iPhones in the quarter, vs. expectations for 42 million units. But iPhone revenue was higher than expected thanks to a greater mix of pricier models sold.

Services, iPhone Revenue Top Forecasts

Apple reported iPhone revenue of $29.91 billion in the quarter, vs. views for $29.14 billion.

The iPhone business accounted for 56% of revenue last quarter. Apple's second largest segment — services — accounted for 18% of sales.

Services brought in $9.55 billion vs. expectations for $9.21 billion. Apple's services include the App Store, iCloud, AppleCare, Apple Music and other offerings.

For the September quarter, Apple expects revenue of $61 billion, based on the midpoint of its guidance. Wall Street was looking for $59.6 billion.

Apple did not give a target for earnings per share. Analysts were modeling for earnings of $2.65 a share, up 28% year over year.

The company expects a gross profit margin of 38% to 38.5% in its fiscal fourth quarter. Its gross margin was 38.3% in the June quarter.

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