Apple Forecast Beats Wall Street Estimates
Apple projected quarterly sales that topped analysts’ estimates, suggesting demand for iPhones has stabilized after a disappointing holiday period, according to Bloomberg. The company also reported Services revenue grew 16 percent as consumers sign up for an expanding smorgasbord of digital subscriptions. That was just ahead of Wall Street expectations.
Apple said that fiscal third-quarter revenue will be between $52.5 billion and $54.5 billion. Analysts, on average, were looking for $52.2 billion. Fiscal second-quarter results also beat Wall Street expectations. Fiscal second-quarter sales fell 5.1 percent from the period a year ago to $58 billion. Analysts estimated $57.5 billion. Apple had forecast revenue between $55 and $59 billion. That was the second straight quarter of revenue declines.
Net income was $11.6 billion, or $2.46 a share, compared with $13.8 billion, or $2.73 a share, a year earlier. Analysts estimated $2.37 per share. Revenue from iPhones declined 17 percent from a year earlier to $31 billion. Wall Street expected $30.5 billion. Apple CEO Tim Cook said iPhone sales declines were significantly slower in the final weeks of the fiscal second quarter. Services revenue came in at $11.45 billion growing 16 percent, slightly exceeding Wall Street expectations. Apple is looking to diversify through additional devices and services.