Apple Sales and Earnings Beat Wall Street Estimates; Guidance Hints at New Models This Year

Apple Sales and Earnings Beat Wall Street Estimates; Guidance Hints at New Models This Year

7:18 AM, Aug 2, 2017 — Apple (AAPL) reported fiscal third-quarter sales and earnings that topped analyst forecasts and gave a sales projection for the fourth quarter, which analysts said implies that the tech giant will release at least some of the latest editions of its blockbuster iPhone on schedule this year.

Net income was $8.72 billion, or $1.67 per diluted share in the quarter ended July 1, compared with $7.8 billion, or $1.42 per share a year earlier, the Cupertino, California-based company said on Tuesday after the market closed. The per-share earnings topped the average analyst forecast of $1.57 in a Capital IQ poll.

Revenue rose 7% to $45.4 billion, exceeding the average analyst forecast for $44.9 billion.

The company said it sold 41 million iPhone units in the quarter, 2% more than a year earlier. Sales of iPads jumped 15% to 11.4 million units and it sold 4.3 million Mac computers, up 1% from a year earlier.

Shares of the world’s most valuable company rose to a record in pre-market trading, lifted by the better-than-expected earnings figures.

Apple predicted sales this quarter will be between $49 billion and $52 billion, compared with the average Wall Street analyst forecast for $49.2 billion. Apple’s annual product launch event falls in its fiscal fourth quarter and the sales forecast helped dispel concern about reported production delays of the latest series of iPhone models.

“The firm comfortably topped its forecast and produced stellar numbers for its revenue and profit,” Naeem Aslam, chief market analyst at Think Markets UK, said by e-mail. “The big news was about the production of iPhone 8, the flagship product for the firm will hit the market on time with no issues around production.”

Tim Long, an analyst at BMO Capital Markets, said the revenue guidance “affirms our expectations that the premium iPhone ‘Pro’ will launch and ship alongside the standard ‘S’ refresh in September, though initial volumes are likely to be extremely constrained.”

Chief Executive Tim Cook said on a call with analysts, which was published on the Apple website, that sales of iPhones reached a milestone of 1.2 billion units sold cumulatively since the first model hit the market 10 years ago. He also highlighted the record revenue from services of $7.27 billion in the quarter, a 22% jump from a year earlier.

“iPhone results were impressive, with especially high demand at the high end of our lineup,” Cook said.

Companies: Apple Inc.
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