Apple Reports Strong Growth Despite Higher-Priced iPhones
Apple said sales increased 17% to $ 53.3 billion overall in its fiscal third quarter, the three month period through the end of June. Profits rose 40% to $ 2.34 per share, in part due to the big corporate tax cut. Analysts had expected Apple would report $ 52.4 billion of sales and $ 2.18 in EPS.
Shares of Apple, already up 13% so far this year, jumped 3% in afterhours trading on Tuesday. With a market cap of over $ 935 billion at the close of trading on Tuesday, another 7% increase could put the company’s value above $ 1 trillion (though it could require a slightly greater rise depending on how much stock Apple bought back during the quarter).
Apple’s results avoided the bad reaction given to some other big tech stocks. Netflix and Facebook struggled after reporting earnings earlier this month (with Facebook losing a one-day record $ 124 billion in market value), while reports from Amazon and Google boosted their share prices
As they speak to analysts shortly, Apple execs including tight-lipped CEO Tim Cook likely won’t give investors many hints about what they really want to know–the company’s expectations for its next iPhone update likely arriving in the fall.
