Why Apple Earnings Are Pushing the Shares to a New High

Why Apple Earnings Are Pushing the Shares to a New High

Apple posted revenue of $45.4 billion (+7 percent) supported by 3 percent increase in iPhone sales and 2 percent growth in services in its fiscal 2017 third quarter ended July 1, 2017.

Cook added the company is excited about advances in iOS, macOS, watchOS and tvOS coming this fall.

Apple Inc reported a 7.2 percent rise in quarterly revenue on Tuesday, buoyed by better-than-expected sales of its iPhones ahead of the smartphone's 10th-anniversary edition launch later this year. The nearest we got was Cook's comment that "it's the number one selling smartwatch in the world by a very wide margin".

In an interview, Apple's chief financial officer, Luca Maestri, said Apple saw increases in unit sales and revenue in every product category, including iPads, which had been struggling in recent quarters.

Strong iPad sales of $4.9 billion - nearly $1 billion above Wall Street expectations - and a 21.6 percent jump in the company's services business that includes the App Store also helped boost revenue.

The company generated net income of $8.72 billion, up 11.8% vs the period a year ago, on sales of $45.41 billion, up 7.2%.

Apple relies on it heavily for its revenue, which some see as being a weakness in the company - but this quarter has also provided good news for investors when it comes to generating big profits in other areas. Sales of iPads have been slipping for more than three years, but unit sales jumped 14.8% over the quarter to 11.4m.

Leading the way was Apple's iPad sales, which were up 15 percent from past year.

For fiscal Q4, Apple forecast revenues of United States dollars 49-52 billion, up from USD 46.85 billion a year earlier.

A new iPad launched in March and the iPad Pro, launched in June, helped iPad sales grow 15% year-on-year.

The all-encompassing services - including Apple Music, iTunes, AppleCare, and the App Store, among others - remained the star of the show with a 22 percent increase in revenue from this time previous year.

Investors should expect a substantial move in Apple's share price following the report.

Apple is unlikely to discuss its upcoming products plans Tuesday, but analysts will be scrutinizing the guidance Apple provides for its expected sales in the September quarter. Cook has reiterated several times that he hopes to double Apple's Services business by 2020 - it's already the company's second-largest business, second to iPhones.

Thought Apple earnings don't offer any surprises anymore?



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