Apple delivers strong earnings report in tech stocks

Avatar By Le Williams | 2 years ago

Apple reported strong results for the fiscal third quarter Tuesday, posting big beats on earnings per share and average iPhone selling price.

The quarterly report comes after a market defeat for major tech stocks. Silicon Valley giants Facebook and Twitter each shed 20 percent after disappointing reports last week.

Shares of Apple surged 4 percent in extended trading, after the company fell right in line with analyst projections of strong upsides for the quarter that ended June 30. EPS grew by 40 percent year over year, and revenue grew by 17 percent year over year.

Many were hanging high hopes on Apple’s flagship handset and its climbing average selling price (ASP).

Notably, the 41.3 million iPhones shipped during the third quarter is remained flat from last year’s period, but the ASP of $724 is a notable jump from the year-ago period.

Experts attribute the ASP rise to the pricey iPhone X, which starts at $999.

Apple also touted growth in its other products, marking over 60 percent growth in wearables, which includes the Apple Watch, AirPods and Beats headphones.

The company’s total “Other Products” category, which also includes the HomePod, saw a 37 percent year-over-year jump in revenue, totaling $3.74 billion. Analysts had forecast $3.67 billion in revenue for the segment during the third quarter.

As Apple advances its software and services revenue, investors observe the categories which includes the App Store, Apple Care, Apple Pay, iTunes and cloud services.

The segment has been outpacing iPhone revenue growth for several quarters.

Apple’s CEO Tim Cook said that none of the imposed tariffs have affected Apple products, but that the company is “evaluating” the most recently announced tariff proposal which would encompass $200 billion worth of Chinese goods.

“Of course the risk associated with more of a macroeconomic issue, such as an economic slowdown in one or more countries, or currency fluctuations that are related to tariffs is very difficult to quantify and so we’re not even trying to quantify that to be clear about it,” Cook said.