Consumer electronics giant Apple late Thursday beat Wall Street's targets for its fiscal fourth quarter thanks to strong iPhone and Mac computer sales. But Apple stock dropped in extended trading.
The Cupertino, Calif.-based company earned $1.29 a share on sales of $90.1 billion in the quarter ended Sept. 24. Analysts polled by FactSet expected Apple earnings of $1.27 a share on sales of $88.7 billion. On a year-over-year basis, Apple earnings rose 4% while sales climbed 8%.
In the September quarter, Apple's iPhone revenue increased 10% to $42.6 billion. Smartphones accounted for 47% of the company's total sales in the period. The company began selling its iPhone 14 series handsets on Sept. 16 after a week of preorders.
Meanwhile, Apple's Mac computer sales jumped 25% to $11.5 billion. And revenue from Apple's wearables, home and accessories unit rose 10% to $9.7 billion.
Services revenue increased 5% to $19.2 billion. Services include the App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, Apple Arcade and other offerings.
Apple Stock Slides After Report
Apple's iPad unit was the only product category to post a drop in sales in the quarter. IPad sales declined 13% to $7.2 billion in the fiscal fourth quarter.
"Our record September-quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," Chief Financial Officer Luca Maestri said in a news release.
He added, "The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high."
In after-hours trading on the stock market today, Apple stock sank 1.5% to 142.67. During the regular session Thursday, Apple stock slid 3.1% to close at 144.80.
Apple stock has been consolidating for the past 43 weeks with a buy point of 183.04, according to IBD MarketSmith charts. It has an IBD Composite Rating of 80 out of 99, says IBD Stock Checkup.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
