Apple beat on the top and bottom lines as sales of iPhone sales grew for the first time in a year.
But the pick up in the company’s business, which lifted Apple shares 2% in after hours trading on Tuesday, may not prove as robust as some have hoped. Apple’s sales forecast for the first three months of 2017 fell short of Wall Street targets.
Apple’s net income also declined during the final three months of the year, as the company’s gross profit margins contracted.
Apple’s revenue however returned to growth after three quarters in which its revenue fell on an annual basis. Apple’s revenue was helped by record sales of its most important product, the iPhone. Apple said that this quarter’s earnings per share, at $3.36 per share, set a company record.
Apple also declared a cash dividend of $0.57 per share on Tuesday.
We’ll be updating this post more information comes in — click here for the latest.
Here are Apple’s key earnings figures versus Wall Street’s expectations:
Q1 EPS (GAAP): $3.36, up 2% year-over-year, versus expectations of $3.22
Q1 revenue: $78.4 billion, up 3% year-over-year, versus expectations of $77.4 billion
Gross margin: 38.5%, versus expectations of 38.4%
iPhone unit sales: 78 million, up 4% year-over-year, versus expectations of 76.3 million
iPhone ASP: $694, versus expectations of $688
iPad unit sales: 13 million, versus 16.12 million in the year-ago quarter
Mac unit sales: 5.3 million, versus 5.3 million in the year-ago quarter
Q2 revenue guidance: between 51.5 billion and 53.5 billion
Here are the important numbers from Apple:
Earnings call live blog:
5:23: On to the questions. Morgan Stanley’s Katy Huberty asks about gross margin guidance.
5:22: Apple’s guidance includes over $1 billion of foreign exchange headwinds factored in.
5:22: Apple reduced its share count by 65 million over the quarter, Maestri says.
5:21: $230.2 billion of Apple’s cash is held overseas.
5:21: Maestri: Retail stores saw “double digit growth” in visitors and revenue.
5:19: Recent data from NPD says Apple dominates tablets over $200 in the United States.
5:18: Luca on iPad says it was “ahead of expectations” with growth in China and India. Still way down for the quarter.
5:16: Luca turns to services. “App Store growth was up 43% for the first three 13 weeks of the quarter.”
5:15: iPhone average selling price is up, driven by “amazing success of iPhone 7 Plus.”
5:14: “Strong customer interest left us in supply/demand imbalance for several products this quarter,” Maestri says.
5:12: Now we’re hearing from CFO Luca Maestri.
5:12: I bet it feels good for Tim Cook to say “record-breaking quarter” again.
5:11: Tim Cook talking about the enterprise business with IBM and SAP.
5:09: “I’m personally using HomeKit in my own home,” Tim Cook says. Siri turns his lights on in the morning, he says.
5:08: “We now have a rich lineup of wearable products” with Apple Watch, AirPods, and wireless beats. “Huge potential for Apple Watch going forward.”
5:07: Best quarter ever for Apple Watch in both unit sales and revenue.
5:06: Goal is to double the size of Apple’s services better this year.
5:05: Tim Cook says that this quarter was the “best quarter ever for services.”
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