Apple delivers stronger-than-expected revenue, profits
Apple Inc. on Tuesday reported fiscal second-quarter profit of $11.56 billion US, a decline of five per cent from a year earlier but still better than expected.
The Cupertino, California-based company said it had net income of $2.46 per share and will pay a cash dividend of 77 cents per share.
The results topped Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $2.37 per share.
The maker of iPhones, iPads and other products posted revenue of $58.02 billion in the period, with international sales accounting for 61 per cent of the quarter's revenue..
CEO Tim Cook noted strength in sales of services, and "strong momentum" in the Wearables, Home and Accessories category.
Analyst Daniel Ives expressed support for Apple's new direction as it is going "into a major product cycle and new streaming services initiative that we believe could garner 100 million consumers over the next three years. "
He expects the stock to rise in coming months after Cook's optimistic forecast.
"While China (down 21.5 per cent) continues to be soft, it appears Apple saw strength in the last few weeks of the quarter across the board on a rebound in iPhone demand and thus are giving Cook and Cupertino confidence to guide June ahead of Street expectations."
For the current quarter ending in July, Apple said it expects revenue in the range of $52.5 billion to $54.5 billion. Analysts surveyed by Zacks had expected revenue of $52.09 billion.
Apple shares have climbed 27 per cent since the beginning of the year, while the Standard & Poor's 500 index has risen 18 per cent. In the final minutes of trading on Tuesday, shares hit $200.67, a rise of 21% in the last 12 months.