Shares of Apple Inc. (AAPL – Analyst Report) surged approximately 4% ($16.39) in afterhours trading on the heels of a better-than-expected third quarter result. Apple reported earnings of $7.47 per share that comfortably surpassed the Zacks Consensus Estimate by approximately 17 cents (2.33%). However, earnings declined 19.9% year over year and 26.0% sequentially, primarily due to lower top-line and margin growth.
Revenues increased 1.0% year over year but declined 19.0% sequentially to $35.32 billion, within the company’s guided range of $33.5 billion to $35.5 billion. Revenues were slightly better than the Zacks Consensus Estimate of $35.15 billion.
iPhone unit sales climbed 20.0% year over year but decreased 17.0% from the previous quarter to 3.24 million. iPhone revenues climbed 15.0% from the year-ago quarter but plunged 21.0% from the previous quarter to $18.15 billion in the quarter.
— Zacks Investment Research