Apple Earnings a Mixed Bag of Good and Bad
Shares of AAPL are sliding after hours even though the company managed to beat analyst earnings and revenue estimates.
What's really hurting Apple at the moment is the admission from the iDevice maker that it expects gross margins of between 36.5 percent and 37.5 percent this quarter. That range misses forecasts of 37.9 percent. Similarly, Apple projects revenue of $55 - $58 billion. Analysts' estimate come in at $55.70 billion for this quarter.
In the quarter for which Apple was reporting earnings today (its fourth fiscal quarter) net income tumbled by 8.5 percent to $7.5 billion from $8.2 billion in the same quarter last year. Revenue, on the other hand, increased 4 percent to $37.5 billion (up from $35.97 billion in Apple's Q4 of 2012).
"Analysts had expected the tech giant to report earnings of $7.96 a share on $36.93 billion in revenue, according to a consensus estimate from Thomson Reuters," CNBC reports.
Getting down to the actual sales numbers, Apple sold 33.8 million iPhones and 14.1 million iPads last quarter.
Apple admitted Monday that its gross margin fell to 37 percent (down from 40 percent in the year-ago quarter).
"We're pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones," said Apple CEO Tim Cook in a written statement. "We're excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS."
Sources: Apple, CNBC