Apple late Thursday comfortably beat estimates for its fiscal second quarter, thanks to record services revenue. But Apple stock fell in extended trading.
The consumer electronics giant earned $1.65 a share on sales of $95.36 billion in the quarter ended March 29. Analysts polled by FactSet had expected earnings of $1.62 a share on sales of $94.54 billion. On a year-over-year basis, Apple earnings increased 8% while sales rose 5%.
The Cupertino, Calif.-based company also raised its quarterly dividend by 4% to 26 cents a share. Apple also announced a new stock-buyback plan totaling up to $100 billion.
In the March quarter, Apple's services revenue surged 11.6% year over year to $26.65 billion. Services accounted for 27.9% of Apple's total revenue.
Apple's iPhone sales rose 1.9% to $46.84 billion in fiscal Q2. Smartphones accounted for 49.1% of Apple's total revenue in the quarter.
Mac computer sales climbed 6.6% to $7.95 billion. IPad tablet sales jumped 15.2% to $6.4 billion. However, Apple's Wearables, Home and Accessories unit saw sales drop 4.9% to $7.52 billion.
For the current quarter, Apple expects its total revenue to increase by a low to mid-single-digit percentage. Analysts had modeled for sales to rise 4% to $89.19 billion in the fiscal third quarter.
Apple Stock Drops After Report
In after-hours trading on the stock market today, Apple stock sank more than 3% to 205.30. During the regular session, Apple stock rose 0.4% to close at 213.32. It had risen for eight straight sessions.
Apple stock has been pressured in recent weeks by concerns over the impact of the Trump administration tariffs.
On a conference call with analysts, Chief Executive Tim Cook said tariffs had a limited impact on the March quarter. However, he predicted $900 million in added costs to the June quarter from tariffs, assuming current rates and policies don't change.
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