Apple missed expectations for revenue, profit, and sales for many of its lines of business on Thursday, sending the stock lower in extended trading. Apple’s overall sales for the holiday quarter were about 5% lower than last year’s, the first year-over-year sales decline since 2019.
Apple CEO Tim Cook said three factors hurt the results: a strong dollar, production issues in China affecting the iPhone 14 Pro and iPhone 14 Pro Max, and the overall macroeconomic environment.
“On the third factor, I would say was just the challenging macroeconomic environment, and you’re hearing that from, I would think, everybody,” Cook told CNBC’s Steve Kovach.
Apple shares dropped over 4% at one point during extended trading on Thursday before rising after the tech giant provided data about outlook for the current quarter. The company’s data points suggested iPhone sales won’t decline as rapidly as they did during the holiday quarter.
Here’s how Apple did versus Refinitiv consensus expectations:
- EPS: $1.88 vs. $1.94 estimated, down 10.9% year over year
- Revenue: $117.15 billion vs. $121.10 billion estimated, down 5.49% year over year
- iPhone revenue: $65.78 billion vs. $68.29 billion estimated, down 8.17% year over year
- Mac revenue: $7.74 billion vs. $9.63 billion estimated, down 28.66% year over year
- iPad revenue: $9.4 billion vs. $7.76 billion estimated, up 29.66% year over year
- Other Products revenue: $13.48 billion vs. $15.23 billion estimated, down 8.3% year over year
- Services revenue: $20.77 billion vs. $20.67 billion estimated, up 6.4% year over year
- Gross margin: 42.96% vs. 42.95% estimated
Apple did not provide guidance for the current quarter ending in March. It hasn’t provided guidance since 2020, at first citing uncertainty caused by the pandemic. Analysts expected the company to guide to about $98 billion in sales in the company’s fiscal second quarter.
However, Apple did offer some data points on performance expectations. Chief…
Read the full article here
