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02/08/24
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Apple Q3 Results Higher Than Expected
On Thursday after the close, Apple reported its Q3 results, with revenue and earnings coming in higher than Wall Street estimates, as softer iPhone revenue amid rising Chinese competition was offset by an increase in services revenue.
Shortly after Friday’s open, Apple Inc. shares were trading over 2% higher.
The company reported third-quarter revenue of $85.8B and earnings of $1.40 per share. Analysts had expected revenue of $84.45B and EPS of $1.35.
Revenue was 5% higher as a slight decline in iPhone revenue was offset by services revenue.
Although sales of the flagship iPhone handset, which still makes up close to 50% of total revenue, dropped from $39.67B a year earlier to $39.30B, it beat estimates of $38.81B.
The Services segment was the highlight of the report, which saw its revenue soar 14% to a record high of $24.21B, higher than the $24.01B Wall Street estimated.
China’s sales dropped by 6.5% to $14.72B as the iPhone has had to face increasing competition in the area from Huawei and other local smartphone makers.
Investors will focus on the earnings call as they hope to get details on Apple Intelligence and guidance.
Evercore ISI said in a note after the results overall numbers were higher than expected and the focus would be on Apple Intelligence and GUIDE commentary.
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