Apple’s shares dipped by up to 3% in extended trading on Wednesday, as the iPhone maker reported its earnings after hours, which surpassed expectations, but the company presented a cautious outlook for the current quarter.
In its fiscal fourth quarter, Apple reported earnings per share of $1.46 on revenue totalling $89.5 billion. Wall Street had anticipated earnings per share to be $1.39 with revenue reaching $89.3 billion, according to estimates from Bloomberg. This marked the fourth consecutive quarter where revenue declined compared to the same period last year.
The company disclosed that iPhone sales increased to $43.8 billion in its fourth quarter, slightly exceeding expectations and setting a new record for iPhone sales in its fiscal fourth quarter. Service revenue exceeded $22 billion for the first time.
Revenues in its Mac, iPad, and Wearables categories dropped compared to the same quarter last year. For its just-concluded fiscal year, Apple reported a total revenue of $383.3 billion, down from $394.3 billion in the previous year.
During a call with analysts after the results, Apple’s CFO, Luca Maestri, mentioned that the revenue for the current quarter is expected to be “similar” to last year. Maestri also mentioned that the company anticipates a significant deceleration in revenue for the Mac, iPad, and Wearables categories from the fourth quarter.
Wall Street analysts had predicted that revenue for the current quarter would reach $122.8 billion, based on data from Bloomberg. In the December quarter of last year, Apple reported revenue of $117.2 billion.
Apple’s latest results also highlighted the strength of its domestic market in the fourth quarter, with sales in the Americas region surpassing last year, the only major geography to experience year-over-year revenue growth.
These highlights from Apple’s quarter were compared to Wall Street expectations compiled by Bloomberg:
– Revenue: $89.5 billion versus the expected $89.34 billion ($90.15 billion in Q4 2022)
– Adjusted Earnings Per Share (EPS): $1.46 versus the expected $1.39 ($1.29 in Q4 2022)
– iPhone revenue: $43.8 billion versus the expected $43.73 billion ($42.63 billion in Q4 2022)
– Services revenue: $22.3 billion versus the expected $21.36 billion ($19.19 billion in Q4 2022)
– Mac revenue: $7.6 billion versus the expected $8.76 billion ($11.51 billion in Q4 2022)
– iPad revenue: $6.4 billion versus the expected $6.33 billion ($7.22 billion in Q4 2022)
– Wearables revenue: $9.3 billion versus the expected $9.41 billion ($9.65 billion in Q4 2022)
Thursday’s report came shortly after Apple unveiled its latest MacBook Pro lineup and updated iMac during its ‘Scary Fast’ virtual event on Halloween eve.”