Apple, Inc.
The stock weakness is apparently due to Apple's China and Services performance as well as Mac revenue modestly trailing expectations.
Apple's Key Q3 Numbers: Cupertino, California-based Apple reported mid-single-digit percentage year-over-year revenue growth for the third quarter, an improvement from the 4.31% decline in the second quarter and in line with the company's guidance issued on the second-quarter earnings call.
Commenting on the results, Tim Cook, CEO of Apple, said, "Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5% from a year ago."
"During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac."
On its second-quarter earnings call, Apple flagged gross margin of 45.5%-46.5%, and a forex headwind of about 2.5 percentage points.
Services revenue reached a new all-time record, but was a tad below the forecast. Sales of the flagship product, the iPhone; the iPad; and Wearable, Home & Accessories products all came in above expectations. Mac revenue also came in shy of estimates.
Apple CFO Luca Maestri said: "We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty."
The company generated nearly $29 billion in operating cash flow.
Apple's Q3 Performance By Segment: Apple's Service revenue hit a record, while iPhone, iPad and Wearable, Home & Accessories sales beat expectations. iPad revenue rose by double-digit percentages both year-over-year and sequentially. China was a sore spot, with revenue declining both year-over-year and quarter-over-quarter.
Apple Shareholder Returns: Apple's board declared a quarterly cash dividend of 25 cents per share, payable on Aug. 15 to shareholders of record as of Aug. 12.
Look Ahead: The consensus estimates for Apple's September quarter and full year are as follows:
Q4 ConsensusChange (Y-o-Y)FY24 ConsensusY-o-Y Change
EPS$1.56+6.85%$6.62+8.00%
Revenue$93.39B+4.4%$387.96B+1.22%
More details regarding the company's progress with artificial intelligence technology could be forthcoming when the tech giant hosts its earnings call at 5 p.m. EDT.
Apple Stock: For the year-to-date period, Apple stock has added 13.71%, comparable with the SPDR S&P 500 ETF Trust's
The stock ended Thursday's session down 1.68% at $218.36.