For the second straight quarter, the largest company in the world fell short of earnings expectations.
Apple’s (AAPL) fiscal-fourth quarter earnings of $8.67 a share – reported after the bell today – were 24% higher than the same quarter a year ago. However, profits were eight cents short of the $8.75 most analysts were expecting.
So far the earnings miss hasn’t done too much damage to the company’s stock. Shares are down just over a percent in after-hours trading. Perhaps, given Apple’s recent drop-off, a miss was already baked into the stock price – at least to a degree.
The earnings miss came despite the 26.9 million iPhones the company sold last quarter – roughly 2 million more than analysts were expecting.
IPad sales also increased 26% from a year ago – an impressive feat given that some consumers were likely holding out for the iPad Mini, which is set to debut next Friday. However, the 14 million iPads sold trailed the 15 million units sold that analysts were looking for.
Other highlights from Apple’s earnings release:
- The company expects earnings this holiday quarter to rise to $11.75 a share – well below Wall Street estimates of $15.43 a share.
- Revenue increased 27% year-over-year.
- Operating expenses increased 295 to $3.46 billion – something that weighed on profits.
- The company sold 5.3 million iPods, less than the 5.8 million analysts had projected.
Though Apple shares haven’t been crushed by the earnings miss, the stock is down to $605 as of 5:30 p.m. eastern. That’s almost $100 less than it was a month ago.
More From Wyatt Investment Research