Apple shares are up about 5.5% post market trading after it reported better-than-expected earnings for the June quarter — with a signal that the much anticipated iPhone 8 is on track to be introduced before the end of September.
If the stock price holds tomorrow, then Apple would hit an all-time high.
The company generated net income of $8.72 billion, up 11.8% vs the period last year, on sales of $45.41 billion, up 7.2%. Analysts expected $44.89 billion from the top line.
Earnings at $1.67 a share were also well ahead of the $1.57 that the Street anticipated.
But investors may be most excited by the company forecast for current quarter revenues to come in from $49 billion to $52 billion. That’s ahead of the $46.2 billion analysts expected — suggesting that the iPhone 8 is on track to be out soon.
Apple sold 41.0 million iPhones in the June quarter, up 1.6% from last year and ahead of the 40 million that investors expected.
“With revenue up 7% year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” CEO Tim Cook says. He adds that “we’re very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall.”
iPhones accounted for 55% of Apple’s revenues.
The company sold 11.4 million iPads, up 14.8%. Macs were up nearly 1% to 4.29 million.
Revenues for Apple’s Services operation that includes digital content and Apple Pay increased 21.6% to $7.27 billion.
Other products — including Apple TV, Apple Watch, and Beats products — generated $2.74 billion, up 23.3%.