Apple beat analysts’ forecasts for earnings and revenues in the quarter that ended in June. iPhones and Macs set sales records. CEO Tim Cook called it “an amazing quarter” that included “a great start for Apple Watch.”
But shares are down more than 7% in aftermarket trading, largely because Apple projects sales in the current fiscal fourth quarter to come in between $49 billion and $51 billion — and analysts thought the number would be at least $50.9 billion.
Last quarter Apple generated net income of $10.7 billion, up 37.8% vs. the period last year, on revenues of $49.6 billion, up 32.5%. The revenue number beat forecasts for $49.3 billion. Earnings at $1.85 a share also topped the Street’s prediction of $1.81.
The company sold 47.5 million iPhones, 10.9 million iPads and 4.8 million Macs — all in line with expectations. Apple didn’t break out sales numbers for the Apple Watch. But in a conference call with analysts, CFO Luca Maestri said that it accounted for “over 100%”of the $952 million growth since the previous quarter in revenues in the “other” category — suggesting that it more than compensated for declines in iPod sales.
Cook talked up Apple Music. “Millions and millions of customers are already using the new service,” contributing to “a renewed sense of excitement around music.”