Apple Inc. (NASDAQ:AAPL) stock rallied $3.19, or almost 3%, to $124.56 in after-hours trading after it reported better-than-expected 2017 first-quarter EPS and revenue, and upside iPhone units.
The tech giant handed in earnings of $3.36 per share on revenue of $78.35 billion for its 2016 holiday-quarter, beating Wall Street estimates of $3.22 per share on revenue of $77.26 billion. Most importantly, Cupertino saw iPhone sales exceed Wall Street’s expectations for the quarter, with 78.3 million units sold, on projections of 76.3 million. It was iPhone’s best quarter ever which following the company’s three straight quarters of lower year-over-year sales will certainly put serious doubts on the notion that Apple’s iPhone business may have finally peaked.
“We’re thrilled…that our holiday quarter results generated Apple’s highest quarterly revenue ever…” said Tim Cook, Apple’s CEO in a statement, noting they sold “more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch. Cook added that he was “very excited about the products in the [co.’s] pipeline.”
Apple also said that it sold 13.08 million iPads versus 14.7 million estimates, and 5.37 million Macs vs. 5.2 million estimates.
Looking ahead, the company guided Q2 revenues of $51.5 – $53.5 billion, as compared to analysts’ expectations of $54.05 billion. The below estimates guidance are Q1’s lone dark spot, and the part Apple critics will pounce on. Gross profit margin meanwhile, are expected between 38% to 39%, and operating expenses between $6.5 billion to $6.6 billion. Other income/(expense) is projected at $400 million.
Apple’s board of directors also declared a cash dividend of 57 cents per share payable on Feb. 16, 2017 to shareholders of record as of the close of business on Feb. 13, 2017.
Apple Stock Action / Trading Metrics
In the past 52 weeks, shares of Cupertino, Calif.-based iPhone maker have traded between a low of $89.47 and a high of $126.65 with the 50-day and 200-day MA located at $118.30 and $112 levels, respectively. Additionally, shares of Apple, currently pushing higher to challenge resistance along the $127 vicinity, trade at a P/E ratio of 0.99 and have a Relative Strength Index (RSI) and MACD indicator of 71.92 and 1.62, respectively.
AAPL currently prints a one year return of about 29% and a year-to-date return of around 5%.