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Apple Inc. announced better-than-expected financial results for its fourth fiscal quarter on Thursday, but shares plunged into after-hours trading when the company released disappointing forecasts for the holiday season.
The company, valued at $ 1 trillion, posted earnings per share of $ 2.91 on sales of $ 62.9 billion in its last quarter, while FactSet consensus forecast earnings per share of 2 , 78 USD and a turnover of 61.5 billion USD. Apples
AAPL, + 1.54%
The turnover of the iPhone was also positively surprised, reaching $ 37.2 billion for the quarter, while analysts expected $ 35.6 billion. During the quarter, the average selling price of an iPhone was $ 793, well above the $ 751 projection.
Follow the call on Apple's results on our live blog
The smartphone maker's forecast for the December quarter, however, is below expectations. Apple expects sales of $ 89 billion to $ 93 billion for the holiday quarter, while analysts had announced a $ 92.9 billion business figure. Before the release of the report, Morgan Stanley analyst Katy Huberty called Apple's outlook for the December quarter "the most important driver of investor sentiment."
Shares finished the afternoon session down 6.5%, which would maintain Apple's $ 1 trillion valuation if it held.
Apple's activity in China, a concern in the report, gained momentum in September. Apple achieved an 11.4 billion dollar business in Greater China for the quarter, up from 9.8 billion a year earlier. Investors feared that tensions stemming from the trade war, macroeconomic problems and the freezing of approvals for new games in China could have an impact on the region's consumer spending.
The company did not meet expectations with its services business, which recorded a turnover of $ 9.98 billion, against $ 10.2 billion expected by analysts. The Services business includes the App Store, Apple Music and other growing business areas of Apple. Service revenues increased by 17% in the quarter, iPhone 29% and "other products" by 31%. The "other products" segment includes Apple Watch and AirPod watches.
Apple stocks rose 33.2% over the last 12 months, while the Dow Jones Industrial Average index
DJIA, + 1.06%
, which counts Apple as a component, gained 8.3%.
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