Apple surpasses modest expectations with 8% growth in services sector: Live updates

Apple has released its fiscal third-quarter results, exceeding the predictions of Wall Street analysts in both earnings and sales. The company's success can be attributed to its robust services sales, which experienced an impressive 8% growth compared to the previous year.

However, despite this positive development, overall sales declined by 1% year over year. Revenue generated by Apple's iPhone, Mac, and iPad lines also experienced a decrease from the previous year. Consequently, Apple shares dropped more than 2% during extended trading.

Let's take a closer look at how Apple performed in comparison to Refinitiv consensus estimates and on a year-over-year basis:

- Earnings per share (EPS): $1.26, surpassing the estimated $1.19

- Revenue: $81.8 billion, slightly exceeding the estimated $81.69 billion, but still down by 1%

- iPhone revenue: $39.67 billion, falling short of the estimated $39.91 billion by 2%

- Mac revenue: $6.84 billion, lower than the estimated $6.62 billion by 7%

- iPad revenue: $5.79 billion, significantly lower than the estimated $6.41 billion by 20%

- Other Products revenue: $8.28 billion, slightly lower than the estimated $8.39 billion by 2%

- Services revenue: $21.21 billion, surpassing the estimated $20.76 billion by 8%

- Gross margin: 44.5%, slightly higher than the estimated 44.2%

Apple did not provide any official guidance for the future. Since 2020, the company has refrained from issuing official guidance due to the prevailing uncertainty. However, Apple did share some insights into its expectations for the current quarter.

Unfortunately, this further contributed to the decline in stock value as CFO Luca Maestri stated that the company anticipated a decrease in revenue for the September quarter.