Last Afternoon, Apple released earnings for its third fiscal quarter. According to a consensus estimate at Thomson Reuters, analysts had expected the company to report earnings of $1.23 a share on roughly $37.98 billion in revenue. Apple was trading down 0.58% in yesterday’s after hour session, as Apple just missed the revenue forecast, coming in at $37.43 billion. However, they did beat the EPS estimate, posting earnings of $1.28 per share.
In response, Tim Cook told CNBC, “I couldn’t be happier. This is the best execution of any quarter since I’ve been at Apple.” However, questions remain as to how Apple plans to continue to grow revenue in developed markets. Wearables, the new iPhone, and the recent IBM partnership are all fresh on analysts’ minds. Investors are hungry for Apple’s next product release, and although Apple shares enjoyed a nice rebound this morning, many fund managers still remain unenthusiastic about the company’s prospects. In my earnings preview, I mention that the third quarter is usually a bit awkward for Apple, and this earnings report only solidifies that claim. The company’s real test will be fourth quarter earnings, as that report will be able to gauge the popularity of the iPhone 6, and potentially the iWatch as well.