Apple Releases Positive Second Fiscal Quarter Earnings Report

After the closing bell on Tuesday, Apple Inc released its financial results for the second fiscal quarter. The company posted upbeat earnings report for the second fiscal quarter despite forecasts from analysts of a weak quarter as well as their weak iPhone sales during the previous quarter 

Shares of Apple which were down during the release of its previous quarter earnings report was mostly due to a disappointing iPhone sales. Apple reported 77.3 million unit shipments of iPhone units during the first fiscal quarter missing estimates of 80 million unit shipments. However, Apple was still able to exceed most earnings estimates posting $3.89 per share in earnings due to the higher prices of the latest iPhone units.

The company gave a guidance of $60 billion to $62 billion for their revenue for the second fiscal quarter which is slightly down from analyst estimates of $65.73 billion. This also pushed shares of the company lower during the trading session despite a positive financial result. Apple also had a second quarter margin guidance of 38% to 38.5% which is slightly lower than analyst expectations of 38.9%.

Apple Shares

Apple shares which are up by 1.8% during Monday’s trading session recovered by more than 1% on Tuesday even before the release of the earnings report which was posted during the after-hours trading. This was due to the outlook from analysts that the stock may hit $300 per share in the next five years.

The stock which is up by 14% during the past twelve months has been given a price target for the next five years of $300 which represents an upside of 80% from the current stock price of $169.10 per share. Apple’s stock is up by more than 2% from the previous trading session. Shares of the company, however, has risen by more than 5% during the after-hours trading.

Q2 Earnings Report

For the fiscal second quarter, Apple announced a revenue of $61.1 billion which represents a 16% growth from the same quarter last year. This also beat most expectations of the company posting a revenue of $60.82 billion.

Earnings of the company came in at $2.73 per share beating analyst expectations of $2.67 per share. This represents a growth of 30% from the same quarter a year ago. Apple’s iPhone sales which declined during the previous quarter came in at 52.2 million for the second fiscal quarter missing estimates once again by 52.54 million.

Apple chief executive officer Tim Cook stated that the company is thrilled to report its best March quarter in history led by strong revenue and a growth in the sales of iPhone, Services, and Wearables. Cook also stated that customers chose the iPhone X more than any other iPhone every week during the first three months of the year similar to their launch back in December.

The company gave a guidance for its third fiscal quarter earnings with their revenue expected to come between $51.5 billion to $53.5 billion.

See also: Apple Warns Employees Against Leaking Information

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