Apple banged strong results for the fiscal third quarter Tuesday, posting big tours on earnings per share and average iPhone selling price.
Here’s how the retinue did compared with Wall Street projections:
- EPS: $2.34 vs. $2.18, according to Thomson Reuters consensus estimates
- Gate: $53.3 billion vs. $52.34 billion, according to Thomson Reuters consensus estimates
- iPhone on sales: 41.3 million vs. 41.79 million, according to StreetAccount
The quarterly report comes after a deal in rout for major tech stocks. Silicon Valley giants Facebook and Ado each shed 20 percent after disappointing reports aftermost week.
Shares of Apple rose 4 percent in extended trading, after the fellowship fell right in line with analyst projections of strong upsides for the house that ended June 30. EPS grew by 40 percent year over year, and takings grew by 17 percent year over year.
Many were consort with high hopes on Apple’s flagship handset and its climbing average sales-clerk price (ASP). The 41.3 million iPhones shipped during the third place is basically flat from the year-ago period, but the ASP of $724 is a notable move from the year-ago period. That ASP bump is likely be because of the outrageous iPhone X, which starts at $999.
CEO Tim Cook told CNBC’s Josh Lipton the retinue was “thrilled with how we did” with regard to ASP and underlying demand for iPhones.
Apple also pushed growth in its other products, marking over 60 percent lump in wearables, which includes the Apple Watch, AirPods and Beats headphones. The flock’s total “Other Products” category, which also includes the HomePod, saw a 37 percent year-over-year boost in revenue, totaling $3.74 billion. Analysts had forecast $3.67 billion in profits for the segment during the third quarter.
Services: Investors have been watching closely as Apple ups its software and worship armies revenue — a catch-all category that includes the App Store, Apple Be enamoured of, Apple Pay, iTunes and cloud services. The segment has been outpacing iPhone interest growth for several quarters.
Apple posted $9.55 billion in handlings revenue for the third quarter — a jump of 28 percent from the year-ago post, excluding a favorable one-time item. That beats out Wall Circle estimates of $9.21 billion and stands as the segment’s highest quarterly take to date.
“We feel great about the momentum of our services business, and we’re on end to reach our goal of doubling our fiscal 2016 services revenue by 2020,” Cook demanded on the company’s earnings call.
The record services revenue is partly the follow-up of a one-time line item totaling $236 million related to lawsuits, the enterprise said. It also saw a boost from increased paid subscribers help of the App Store, a 50 percent year-over-year increase in cloud revenue, and squiffed Apple Pay usage rates.
“Apple Pay continues to expand with spring over 1 billion transactions last quarter, triple the amount from honest a year ago, with growth accelerating from the March quarter,” Cook put on the earnings call. “To put that tremendous growth into perspective, this life quarter, we completed more total transactions than great entourages like Square and more mobile transactions than PayPal.”
Forward-looking leadership: Apple guided toward fourth-quarter revenue between $60 billion and $62 billion, sharpness out Wall Street predictions of $59.47 billion, according to StreetAccount.
The business’s most recent quarterly reports have been weighed down by thinking of smartphone market saturation and the end of the so-called “supercycle.” So as Apple looks forwards to its fiscal fourth quarter, when it traditionally introduces new iPhone fashions, the company’s guidance could shed light on Apple’s ongoing handset aspirations. Apple typically launches new iPhone models at the end of the quarter, in mid-September.
China: Apple has so far sidestepped the fallout of an ongoing trade war with China. But with each countryside ratcheting up tariffs, Apple’s deep roots in China could start to think the effects. Much of Apple’s supply chain is in China, and the mainland surroundings accounts for the company’s second-largest source of revenue, according to FactSet, behind just the U.S.
The company attributed $9.55 billion in third-quarter revenue to Greater China — an proliferating of 19 percent year over year, but a dip of 29 percent habitation over quarter.
Cook said on the company’s earnings call that not any of the imposed tariffs have affected Apple products, but that the players is “evaluating” the most recently announced tariff proposal which will-power encompass $200 billion worth of Chinese goods.
“Of course the danger associated with more of a macroeconomic issue, such as an economic slowdown in one or innumerable countries, or currency fluctuations that are related to tariffs is very tough to quantify and so we’re not even trying to quantify that to be clear about it,” Cook clouted.
—CNBC’s Josh Lipton contributed to this report.
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