Out of the four largest market capitalization stocks, Apple Inc. (NASDAQ: AAPL) was the last to come forward with their quarterly earnings call. Investors have been waiting eagerly for a report on Apple earnings, and the news to come out of Cupertino, California has been better than what most analysts expected.
Apple Earnings, Net Income is Up, Despite Slow iPhone Growth
On Tuesday, the company revealed third fiscal quarter net income of $11.5B, equating to $2.34 per share. A year ago, in the same quarter, Apple generated just $8.7B, with earnings per share of $2.16.
Net income is measured after outgoings and was calculated on total revenue of $53.3B. Analysts had expected Apple to report just $52B in revenue.
Revenue was largely driven by iPhone sales, the company’s flagship product line. 41.3 million iPhones were sold in the last quarter, a slight increase from the 41 million that were sold in the same quarter a year ago.
Service revenue was also impressive, with $9.5B generated during the last quarter. This was an increase over the $7.3B of service revenue reported in the previous year. Revenue in this area comes mostly from purchases on the iTunes platform, which includes movies, applications, games, and music.
Sustained growth for the company has been impressive, especially as they have been able to increase net income despite iPhone sales slowing down. The company will likely have to wait until they release the next iteration of the product before sales start to pick up. This time of the year is traditionally slow in terms of total units moved, as most customers have already purchased the current iPhone, and potential new customers typically hold out for the next cycle.
Strong Projections for the Next Quarter
Apple is projecting between $60B and $62B in revenue for the next quarter. This hints that Apple may be ready to release their next iPhone generation, which is rumored to include flagship models as well as more affordable models with lower specs.
All this good news has led to a stock price of $198.99 ahead of trading this Wednesday morning. That’s a 4.47% increase over the previous close. Apple stock value has increased 3.45% in the last month, 7.77% in the last three months, 12.44% over the year so far, and 21.10% over the last 12 months.
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