Apple late Thursday beat Wall Street's estimates for its fiscal fourth quarter thanks to strong iPhone and services sales. But Apple stock fell in extended trading on the company's weaker-than-expected sales growth target for the current quarter.
The Cupertino, Calif.-based company earned an adjusted $1.64 a share on sales of $94.93 billion in the quarter ended Sept. 28. Analysts polled by FactSet had expected earnings of $1.60 a share on sales of $94.5 billion. On a year-over-year basis, Apple earnings rose 12% while sales increased 6%.
Apple's fiscal Q4 report included the first 10 days or so of sales of its iPhone 16 smartphones, Apple Watch Series 10 smartwatches and AirPods 4 wireless earbuds.
In the September quarter, Apple's hardware sales rose 4% year over year to $69.96 billion while services revenue increased 12% to $24.97 billion.
Apple's iPhone revenue climbed 6% to $46.22 billion and accounted for 49% of the company's total sales in fiscal Q4.
For the December quarter, Apple expects its total revenue to grow in the "low to mid-single digits" on a percentage basis year over year, Chief Financial Officer Luca Maestri said on a conference call with analysts. Wall Street was modeling 6.8% sales growth in the period.
Further, the company sees its services revenue growing at a double-digit rate similar to the year-earlier quarter.
Apple Stock Falls After Fiscal Q4 Report
In after-hours trading on the stock market today, Apple stock dropped 1.7% to 222. During the regular session Thursday, Apple stock fell 1.8% to close at 225.91.
Apple's earnings report capped a busy week of announcements for the consumer electronics giant.
On Monday, Apple launched its take on artificial intelligence, branded Apple Intelligence, in a software update for tech giant's newest iPhones, iPads and Mac computers. That same day it introduced a new lineup of iMac desktop computers.
On Tuesday, Apple debuted a new version of its Mac Mini desktop computer. And on Wednesday, Apple unveiled its MacBook Pro notebook computers.
In a news release, Apple Chief Executive Tim Cook said the debut this week of Apple Intelligence "supercharges our lineup heading into the holiday season."
Apple stock is on the IBD Tech Leaders list.
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