Apple Shares Higher After Hours as iPhone Sales, Services Lead to Record Quarter By The Street
The tech giant reported stronger-than-expected results for the first quarter of fiscal 2017.
Shares of Apple (NASDAQ:AAPL) were up almost 3% in after-hours trading on Tuesday as the tech giant reported results for the first quarter of 2017 that beat Wall Street's expectations.
After the market close, Apple posted adjusted earnings of $3.36 per share, beating analysts' projections of $3.22 per share. Revenue came in at $78.4 billion, beating analysts' estimates of $77.3 billion.
"Our team delivered Apple's biggest quarter ever, thanks to the world's most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices."
The Cupertino, Calif.-based company sold 78.3 iPhones during the key holiday shopping quarter, while Wall Street had estimated it would sell 77 million iPhones. The number of iPhones sold were helped by the release of the iPhone 7, the latest model of Apple's flagship smartphone.
Apple's Other Products unit, which includes sales of the Apple TV, Apple Watch and Beats products saw revenue of $4.02 billion, compared to $4.35 billion in the same quarter last year. The revenue was largely in line with analysts' expectations for $4.07 billion.
Apple's Services segment saw revenue of $7.17 billion, surpassing Wall Street's estimates for $6.91 billion. During the year-ago period, the unit had $6.01 billion in revenue.
Analysts have recently been skeptical about whether Apple had experienced weaker-than-expected demand for the iPhone 7. The company has also experienced slowed sales of its Macintosh computers, although Apple did release an updated MacBook Pro with a thinner design and Touch Bar technology last November.
Apple sold 13.1 million iPads in the quarter, falling short of analysts' predictions for 15 million. It sold 5.37 million Macs, which was in line with analysts' estimates, and slightly higher than the 5.31 million it sold in the year-ago quarter.
Additionally, Apple said it would report revenue in the range of $51.5 billion and $53.5 billion for the second quarter of 2017. Analysts surveyed by FactSet are looking for revenue of $53.6 billion.
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