Apple late Thursday beat Wall Street's targets for its fiscal third quarter, thanks to strong iPhone and services sales. Apple stock rose in extended trading.
The consumer electronics giant earned $1.57 a share on sales of $94.04 billion in the quarter ended June 28. Analysts polled by FactSet had expected earnings of $1.43 a share on sales of $89.35 billion. On a year-over-year basis, Apple earnings rose 12% while sales climbed 10%.
For the current quarter, Apple expects its total revenue to increase by a mid to high single-digit percentage year over year. Analysts had been modeling for sales to rise 2.8% to $97.6 billion in the fiscal fourth quarter.
In after-hours trading on the stock market today, Apple rose nearly 3% to 213.55. During the regular session Thursday, Apple stock fell 0.7% to close at 207.57. Year to date through Thursday's close, Apple is down 17%.
In the June quarter, Apple's services revenue rose 13% year over year to $27.4 billion. Services accounted for 29% of Apple's total revenue in the period.
Apple's iPhone sales increased 13% to $44.6 billion in fiscal Q3. Smartphones accounted for 47% of Apple's total revenue in the quarter.
Mac computer sales rose 15% to $8 billion. However, iPad tablet sales declined 8% to $6.6 billion. And Apple's Wearables, Home and Accessories unit saw sales slide 9% to $7.4 billion.
Apple Stock In 'Death Cross'
"We are very pleased with our record business performance for the June quarter," Chief Financial Officer Kevan Parekh said in a news release. "Our installed base of active devices also reached a new all-time high across all product categories and geographic segments, thanks to our very high levels of customer satisfaction and loyalty."
Apple reported $800 million in tariff-related costs in the June quarter. It is predicting $1.1 billion in such costs in the September quarter.
The Cupertino, Calif.-based company is facing a host of challenges, including the lack of a clear AI strategy.
Apple stock has been treading water ahead of its next likely catalyst — the fall release of the iPhone 17.
Further, Apple stock is trading in a so-called "death cross." That means it is above its 50-day moving average line but below its long-term 200-day moving average. It formed the bearish stock chart in early April. Usually, the death cross is a lagging indicator that happens after a stock has already made sell signals.
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