Apple Surpasses Expectations in Fiscal Q4 with Strong iPhone Sales
Apple Inc. (AAPL) has outperformed expectations in its fiscal fourth quarter, primarily driven by exceptional iPhone sales and robust services revenue. The company reported earnings of $1.85 per share, surpassing analysts’ forecasts of $1.78, while total sales reached $102.5 billion, exceeding the projected $102.2 billion.
Fiscal Q4 Performance Overview
In the quarter ending September 27, Apple experienced a year-over-year adjusted earnings increase of 13%, with sales rising by 8%. Significant contributors to this success were the early sales from the iPhone 17 series.
Key Financial Highlights
- Earnings per share: $1.85
- Sales: $102.5 billion
- Year-over-year earnings growth: 13%
- Year-over-year sales growth: 8%
- Services revenue: $28.75 billion (up 15% year-over-year)
- iPhone sales: $49 billion (up 6% year-over-year)
- Mac sales: $8.7 billion (up 13% year-over-year)
- iPad and Wearables sales: flat
Services accounted for 28% of Apple’s total revenue during this period, while smartphones represented 48%. This diversification in revenue streams showcases Apple’s strength in both hardware and services.
Outlook for Fiscal Q1
Looking forward to the current fiscal quarter (Q1), Apple provided guidance indicating anticipated revenue growth of 10% to 12% year-over-year. At the midpoint, revenue is expected to reach around $138 billion, surpassing analyst predictions of $131.8 billion, which reflect a 6% increase.
Expected Earnings and Market Reaction
- Projected earnings per share for fiscal Q1: $2.54 (up 6%)
CEO Tim Cook remarked on the company’s promising lineup as it enters the holiday season, suggesting a positive outlook for product sales.
Following the earnings report, Apple stock climbed 3.5% in after-hours trading, reaching $281.01. During regular trading, shares rose by 0.6% to close at $271.40, giving Apple a market capitalization of $4.03 trillion. Notably, the stock hit a record intraday trading high of $274.14.
Stock Performance
On October 20, Apple shares broke out of a 42-week consolidation pattern, indicating potential for further growth. The stock holds a spot on the IBD Tech Leaders list, reflecting its strong performance in the technology sector.
As Apple continues to navigate the competitive landscape of consumer electronics, its strong financial results and optimistic outlook set the stage for a positive trajectory into the upcoming fiscal quarter.
