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3 weeks ago
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Apple stock, which has risen 25% in 2024 to date but largely tracked the Nasdaq 100 Index, pulled back in after-hours trading after the company released solid but far-from-dazzling quarterly results.
Revenue rose 6% from the year-ago period to reach $94.9 billion, nipping Wall Street analysts’ estimates.
Excluding the one-time charge related to the impact of the reversal of the European General Court’s State Aid decision, diluted earnings per share came in at $1.64.
Shares in Apple closed Thursday’s regular trading session down almost 2% at $225.91 and fell more than 1% more in after-hours trading following the quarterly report.
Wall Street analysts were expecting earnings per share of $1.60 and revenue of $94.58 billion in the quarter.
For the full fiscal year, revenue came in at $391 billion, one-quarter of it from the Services division.
Quarterly numbers from Apple and fellow tech giant Amazon (also reporting Thursday) have been hotly anticipated by Wall Street as concerns mount that the sector is overvalued. Many investors are nervous about the tech sector’s aggressive investment in AI technology, with disclosures of higher expenses dragging down shares in Meta Platforms and Microsoft during Thursday’s session. Google and YouTube parent Alphabet topped analysts’ expectations with its quarterly report on Tuesday.
In Apple’s earnings release, CEO Tim Cook noted the release of the company’s first set of features for Apple Intelligence, the company’s recently unveiled take on AI. The group of products “sets a new standard for privacy in AI,” Cook said, “and supercharges our lineup heading into the holiday season.”
Sales of the iPhone, which account for nearly half of the company’s total revenue, climbed 5.5% over the prior-year quarter to reach $46.2 billion.
