Categories AlphaGraphs, Earnings, LATEST, Technology

Apple reports 40% growth in Q3 EPS, shares up 3%

In its slowest cyclical quarter for iPhone sales, Apple reported earnings of $2.34 per share, riding on a revenue hike of 17% to $53.3 billion. Earnings for the third quarter improved 40%, surpassing analysts’ expectation of $2.18 per share. Revenue also beat Wall Street expectations, which was projected to be around $52.34 billion.

iPhone sales for the quarter was 41.3 million units, slightly below the consensus of 41.8 million units. The slowdown was expected as Apple enthusiasts await the next version of the iPhone before upgrading their existing ones. Revenue from both iPad and Mac declined 5% during the quarter, while that from iPhone sales increased 20%.

As expected, the average selling price of iPhones jumped to $724, driven by the premium-priced iPhone X models launched last year.

Apple's iPhone, iPad and Mac sales trend

Apple’s services business, one of its top growth units, posted a 31% increase in revenue to $9.5 billion. In the prior sequential quarter, the segment, which includes App Store, Apple Music and iCloud, had reported a 31% jump.

Related: Apple Q3 earnings conference transcript

“Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline,” CEO Tim Cook said. Apple’s revenue from Other Products witnessed a 37% jump in the third quarter to $3.7 billion.

For the fourth quarter of 2018, the company expects revenue between $60 billion and $62 billion and gross margin of 38-38.5%. Meanwhile, the tech giant anticipates operating expenses of $7.95 billion to $8.05 billion during this period.

Apple revealed that its revenue from Greater China improved 19% to $9.5 billion during the third quarter, quashing fears that low-priced local players would eat into its market share.

Apple shares gained 3% in aftermarket trading. The stock has rallied 28% in the past 52 weeks and 12.3% year to date.

Apple third quarter 2018 Earnings Infographic

 

Related: Apple second quarter results

iPhone maker Apple Q2 2018 Earnings Infographic

Most Popular

PG Earnings: Procter & Gamble Q3 profit climbs, beats estimates

Consumer goods behemoth The Procter & Gamble Company (NYSE: PG) announced financial results for the third quarter of 2024, reporting a double-digit growth in net profit. Sales rose modestly. Core

AXP Earnings: All you need to know about American Express’ Q1 2024 earnings results

American Express Company (NYSE: AXP) reported its first quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, increased 11% year-over-year to $15.8 billion, driven mainly by higher

Netflix (NFLX) Q1 2024 profit tops expectations; adds 9.3Mln subscribers

Streaming giant Netflix, Inc. (NASDAQ: NFLX) Thursday reported a sharp increase in net profit for the first quarter of 2024. Revenues were up 15% year-over-year. Both numbers exceeded Wall Street's

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top