In recent weeks, MMi has consistently covered the wide range of industry analysts and Wall Street watchers who were aggressively revising their earnings estimates ahead of Apple's Q3 report today. And from the looks of it... they were all wrong.
Aptly described immediately in the press as "a huge earnings miss," shares of AAPL plunged 5% in after-hours trading as the company revealed net income was $8.8 billion ($9.32 per share). Although that's up 21 percent from $7.3 billion ($7.79 per share) one year ago, Wall Street was looking for gains amounting to $10.37 a share. Revenue also rose 23 percent to $35 billion, but analysts were expecting to see $37.22 billion in revenue.
“I think people were prepared for a bit of a top-line miss, but this is a bit extreme,” Alex Gauna, an analyst at JMP Securities, tells CNBC. “Obviously, gross margin wasn’t enough to save the stock in this case.”
Apple sold 26 million iPhones in the quarter, at the low end of expectations. It sold 17 million iPads, beating forecasts. The company reported that its cash pile rose to $117 billion, an increase of $7 billion during the quarter.