Apple reported its fiscal third-quarter results, surpassing Wall Street expectations for both earnings and sales. The growth was primarily driven by stronger services sales, which increased by 8% compared to the previous year. However, overall sales still fell by 1% year over year, with revenue in the iPhone, Mac, and iPad lines all experiencing declines compared to the previous year.
Here’s a breakdown of Apple’s performance compared to estimates and the previous year:
– Earnings Per Share (EPS): $1.26 vs. $1.19 estimated
– Revenue: $81.8 billion vs. $81.69 billion estimated, down 1%
– iPhone revenue: $39.67 billion vs. $39.91 billion estimated, down 2%
– Mac revenue: $6.84 billion vs. $6.62 billion estimated, down 7%
– iPad revenue: $5.79 billion vs. $6.41 billion estimated, down 20%
– Other Products revenue: $8.28 billion vs. $8.39 billion estimated, up 2%
– Services revenue: $21.21 billion vs. $20.76 billion estimated, up 8%
– Gross margin: 44.5% vs. 44.2% estimated
Apple did not provide official guidance for the future, as it has not done so since 2020 due to uncertainties. However, the company did mention that it expects revenue to decline in the September quarter, which led to a further decline in Apple’s stock during extended trading.
The CFO, Luca Maestri, stated that investors can expect September quarter sales to be similar to the performance in the June quarter, where overall revenue declined over 1% year-over-year. Based on the data provided, analysts projected fourth-quarter revenue of $90.19 billion, but Apple’s finance chief’s suggestion indicates a potential revenue of about $89.25 billion for the current quarter.
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