Apple Q2 earnings beat, iPhone sales miss estimates; shares fall after-hours

  • Apple Q2 earnings beat, iPhone sales miss estimates; shares fall after-hours

Apple Q2 earnings beat, iPhone sales miss estimates; shares fall after-hours

With a capital raise of about $100 million, it was the largest IPO since Ford's in 1956. These analysts have also projected a Low Estimate of $1.91/share and a High Estimate of $2.14/share.

Apple's gross margin in the second quarter of 38.9% met expectations for 38.8%, and was at the high end of its own guidance of 38% to 39%. Share performance for the month is now at 1.84%. At Friday's closing price of $143.65, that $1,000 investment would be worth $361,998.00.

This year, no matter what, people will likely shrug as they await the debut of the next iPhone.

Apple has insourced some chip design, sending shares of supplier Imagination Technologies about 60 percent lower year to date.

Smartphone sales were losing ground to Samsung and Google's Android. However, Apple will compete with other online marketplaces on factors other than price. The company attributed the increase to a "very strong product mix and the unbelievable success of iPhone 7 Plus" on its earnings call.

Which is why the rest of the year will be exciting to watch. Apple's ability to get more cash for each phone sold is critical to growing its profits.

In its fiscal first quarter, which ended in late December, the company reported the highest number of iPhones ever sold: 78.3 million.

Apple Inc.'s earnings reports are always fodder for chatter about the iPhone maker's cash reserves, but Tuesday should bring an update on one the most common uses of the company's cash: Shipping it back to investors. The new iPhone X, aka iPhone 8, aka 10th anniversary iPhone is rumored to be delayed.

For its part, Apple has offered a revenue projection ranging from $51.5 billion U.S. to $53.5 billion. The handsets are the lifeblood of the massive company, which briefly reached a record valuation of over $775 billion on Tuesday.

Apple reported quarterly profit rose almost 5% to $US11.03 billion in, on a 4.6% rise in revenue to $US52.90 billion, up 4.6%, a little below forecast for $US53.1 billion.

Revenues rose 5 percent year-on-year to USD 52.9 billion, and quarterly earnings increased to USD 2.10 per diluted share from USD 1.90 a year earlier.

The company forecast total revenue of between US$43.5 billion (RM188.27 billion) and US$45.5 billion (RM196.92 billion) for the current quarter, while analysts on average were expecting US$45.60 billion (RM197.36 billion), according to Thomson Reuters I/B/E/S.