Apple reported fiscal third-quarter earnings that beat Wall Street expectations for sales and profit
Analysts expect the company to earn $1.16 a share on sales of $82.8 billion.
That would translate to a year-over-year decline of 11% in earnings.
Apple’s revenue rose 2% during the quarter, compared to 36% growth during the same period last year and over 8% growth in the March quarter.
Here are the key numbers compared to what Wall Street was expecting:
EPS: $1.20 vs. $1.16 estimated, down 8% year-over-year
Revenue: $83 billion vs. $82.81 billion estimated, up 2% year-over-year
iPhone revenue: $40.67 billion vs. $38.33 billion estimated, up 3% year-over-year
Services revenue: $19.60 billion vs. $19.70 billion estimated, up 12% year-over-year
Other Productsrevenue: $8.08 billion vs. $8.86 billion estimated, down 8% year-over-year
Mac revenue: $7.38 billion vs. $8.70 billion estimated, down 10% year-over-year
iPad revenue: $7.22 billion vs. $6.94 billion estimated, down 2% year-over-year
Gross margin: 43.26% vs. 42.61% estimated
Three months ago, Apple warned that Covid-related shutdowns in China would negatively impact its June-quarter performance.
It also faces weakening consumer spending.
However, Apple’s stock has been rising ahead of its earnings report.
On the stock market today, Apple stock jumped 3.4% as investors waited for the earnings report.
Risks are rising for Apple but they already are reflected in AAPL stock price, Deutsche Bank analyst Sidney
Ho said in a note to clients this week. He rates AAPL stock as buy with a price target of 175.
Ho expects Apple to fare better than its peers despite a challenging environment.
“We believe the company has managed its supply chain better than it planned a quarter ago, while it continued to gain share in an otherwise difficult quarter for smartphones and PCs,” Ho said.
“Looking forward, we expect Apple’s outlook to lean more cautious to reflect the current environment.”
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
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