Apple Beats On Earnings Per Share And Raises Holiday Quarter Forecast

After the close today Apple reported fiscal fourth quarter revenue of $64 billion. That was up from $62.9 billion in the fourth quarter of fiscal 2018 and above the $63 billion consensus forecast from Wall Street analysts. Net income dropped to $13.7 billion from $14.1 billion. Earnings per share, however, rose to $3.05 from $2.91 in the fourth quarter of fiscal 2018. Wall Street had forecast earnings of $2.83 a share.

In after-hours trading shares of Apple were up 1.03%.

The quarter included only a few weeks of sales for the iPhone 11 since Apple’s new smart phones didn’t officially go on sale until September 20. Revenue from iPhones fell in the quarter to $33.4 billion from $37.2 billion. Analysts had forecast sales of $32.8 billion for the iPhone.

Services delivered a pleasant surprise with revenue from the segment up 13% to $12.5 billion. Wall Street had projected services revenue of $12.2 billion.

As expected revenue from China fell, but not horrifically, to $11.1 billion from $11.4 billion in the fourth quarter of fiscal 2018.

Mac sales came in a little light at $7 billion versus the $7.5 billion consensus. Sales from wearables, home, and accessories were above expectations at $6.5 billion against consensus of $5.94 billion.

Finally, as expected, the company raised its guidance for the December quarter for sales of the iPhone 11. The company is now projecting revenue of $85.5 billion to $89.5 billion for the fiscal first quarter of 2020. The Wall Street consensus for the quarter had been at $86.7 billion.

The company also projected that gross margin would climb to 37.5% to 38.5% from the current consensus of 37.6%.