Apple Posts Solid Numbers (AAPL)

After the close of trading on May 2, Apple (AAPL Apple Inc AAPL 145.91 -1.08%) reported revenue of $52.9 billion, up from $50.6 billion a year. The company reported diluted EPS of $2.10, up from $1.90 a year ago. The Board of Directors increased its share buyback program to $210 billion from $175 billion. Analysts had been looking for Apple to report revenue of $53.09 billion and EPS of $2.02, causing Apple to have a slight miss on the top-line and beat on the bottom line.

For the fiscal third quarter, Apple is guiding for revenue in a range of $43.5 billion to $45.5 billion, or $44.5 billion at the mid-point. Analysts had been looking for $45.59 billion. Apple's current guidance falls short of these expectations. (For more, see also: Apple Crushes Analysts Estimates, Stock Rises.)

For the quarter the company reported total iPhones sales of $33.249 billion, up only 1% from the same quarter a year ago. The company noted it sold 50.763 million iPhones in the quarter. iPad sales declined by 12% y/y to $8.922 billion with units sold decreasing by 13% to 8.922 million. Apple's services revenue saw strong growth of 18% to $7.041 billion versus the same quarter last year.

iPhone sales came in weaker than expected with consensus calling for 52 million according to reports. Revenue overall saw a robust 5% growth from the same period last year. The biggest surprise perhaps is the weakness Apple saw in China with a 14% decline in revenue to $10.7 billion from 12.4 billion last year. The rest of the regions saw robust growth.

Guidance is a touch light on revenue at the mid-point, which is what the street will likely focus on, along with iPhone sales. Revenue results and guidance is most likely being negatively impacted due to the expectations building for the iPhone 8. It is likely some consumers are putting off purchases of the current iPhone waiting for updates and announcements on the new phones.

In the chart above we see how Apple's revenue flattens leading up to the September 2014 quarter, which was when revenue growth reaccelerated. in September of 2014 was when Apple launched the iPhone 6 with the two screen sizes. It is more likely than not that we will see the same flattening or slowing of sales before a reacceleration of growth. (For more, see also: Apple Price Levels to Watch After Earnings.)

These are solid numbers for Apple; the stock is trading slightly lower in the after-hours to around $144.50.

One can speculate how many people are going to run out and buy an iPhone 7 a few months ahead of the iPhone 8. That being said, the results are pretty good.




After-hours buzz: AAPL, TWLO, WTW & more

Shares of Twilio tanked 28 percent during after-hours following disappointing guidance for the current quarter. The Cloud Communications Platform company forecasts a loss of 11 cents per share on revenue of $86.5 million, but Wall Street expected losses of 8 cents per share on revenue of $88 million for the current quarter.

Etsy shares plunged more than 15 percent during extended trade amid news that CEO Chad Dickerson and CTO John Allspaw are leaving and stepping down from their positions.

Shares of Apple dropped nearly 2 percent during after hours after a revenue disappointment and iPhone sales falling short of expectations. the tech giant reported earnings of $2.10 on revenue of $52.9 billion while the Street expected earnings of $2.02 on revenue of $53.02 billion, according to Thomson Reuters consensus estimates. For iPhone unit shipments, the company reported 50 million while analysts expected 52 million.

Weight Watchers shares spiked more than 15 percent during extended trading following a narrower-than-expected loss. The company reported a loss of 1 cents per share (adjusted for pre-tax gains) on revenue of $329 million while analysts expected a loss of 4 cents a share on revenue of $322 million, according to Thomson Reuters consensus estimates.

Shares of FireEye soared more than 12 percent during after hours following the company's narrower-than-expected loss and full-year and second-quarter guidance that beat analysts' expectations. The cybersecurity solutions company reported losses of 9 cents per share on revenue of $173.7 million while Wall Street expected losses of 26 cents a share on revenue of $163.7 million, according to Thomson Reuters consensus estimates.

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