Technology

Why Apple is Sliding

Chris Lange

Published: November 1, 2018 4:45 pm

Last Updated: January 11, 2020 3:30 pm

Apple Inc. (NASDAQ: AAPL) released its most recent quarterly results after the markets closed on Thursday. The iPhone giant said that it had $2.91 in earnings per share (EPS) and $61.1 in revenue, compared with consensus estimates that called for $2.78 in EPS and $61.57 billion in revenue. The fiscal fourth quarter from last year had $2.07 in EPS and $52.58 billion in revenue.

In its most recent quarter, the firm reported its product sales as follows:

• iPhone moved 46.89 million units, flat year over year. The segment pulled in revenues of $37.19 billion, an increase of 29% year over year.
• iPad reported 9.70 million units sold, a decrease of 6%. Revenues decreased 15% to $4.09 billion.
• Mac sold 5.30 million units, a decrease of 2% from last year. Revenues increased 3% to $7.41 billion.
• Services revenues increased 17% to $9.98 billion.
• Other Products revenues increased 31% to $4.23 billion.

Regarding guidance for the fiscal first quarter, the company expects to see revenues in the range of $89 billion to $93 billion and gross margin of 38.0 to 38.5% The consensus estimates call for $4.94 in EPS on $92.91 billion in revenue.

Tim Cook, Apple’s CEO, commented:

We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple’s history. Over the past two months, we’ve delivered huge advancements for our customers through new versions of iPhone, Apple Watch, iPad and Mac as well as our four operating systems, and we enter the holiday season with our strongest lineup of products and services ever.

Shares of Apple closed Thursday at $222.22, with a 52-week range of $150.24 to $233.47. The stock has a consensus analyst price target of $239.75. Following the announcement, the stock was down over 3% at $214.51 in the after-hours trading session.