Apple Earnings: Here’s Why Investors are Selling Shares

Apple Inc. (NASDAQ:AAPL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5%.

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Apple Inc. Earnings Cheat Sheet

Results: Net income increased 0.28% to $13.1 billion ($13.81 per diluted share) in the quarter versus a net gain of $13.06 billion in the year-earlier quarter.

Revenue: Rose 17.63% to $54.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apple Inc. reported adjusted net income of $13.81 per share. By that measure, the company beat the mean analyst estimate of $13.44. It missed the average revenue estimate of $54.73 billion.

Quoting Management: “We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.”

Key Stats:

Revenue increased 51.53% from $35.97 billion in the previous quarter. Net income increased 59.31% from $8.22 billion in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $13.4 to a profit $11.7. For the current year, the average estimate has moved down from a profit of $53.24 to a profit of $48.03 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)