Why Apple's iPhone Slump Didn't Actually Matter

Apple Inc. (NASDAQ: AAPL) released its most recent quarterly results after markets closed Tuesday. The iPhone giant said that it had $4.18 in earnings per share (EPS) and $84.3 billion in revenue, compared with consensus estimates that called for $4.17 in EPS and $84.0 billion in revenue. The fiscal first quarter from last year had $3.89 in EPS and $88.29 billion in revenue.

The Board of Directors has declared a cash dividend of $0.73 per share of the Company’s common stock. The dividend is payable on February 14, 2019, to shareholders of record as of the close of business on February 11, 2019.

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

  • iPhone pulled in revenues of $51.98 billion, a decrease of 14.9% year over year.
  • Mac revenues increased 8.7% to $7.42 billion.
  • iPad revenues increased 16.9% to $6.73 billion.
  • Services revenues increased 19.1% to $10.88 billion.
  • Other Products revenues increased 33.3% to $7.31 billion.

Regarding guidance for the fiscal second quarter, the company expects to see revenues in the range of $55 billion to $59 billion and gross margin of 37% to 38%. The consensus estimates call for $2.64 in EPS on $58.99 billion in revenue for the coming quarter.

Tim Cook, Apple’s CEO, commented:

While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide. Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.

Shares of Apple closed Tuesday at $154.68, with a 52-week range of $142.00 to $233.47. The stock has a consensus analyst price target of $178.14. Following the announcement, the stock was up 2.7% at $158.80 in the after-hours trading session.