Apple (AAPL) stock is trading in negative territory Friday even after the tech giant beat top- and bottom-line expectations for its fiscal fourth quarter.
In the three months ended September 28, Apple's revenue increased 6.1% year over year to $94.9 billion, boosted by 11.9% growth in its Services segment to $25 billion. The company said its earnings per share (EPS) improved 12% from the year-ago period to $1.64.
"Our record business performance during the September quarter drove nearly $27 billion in operating cash flow, allowing us to return over $29 billion to our shareholders [including through stock buybacks and dividends]," said Apple Chief Financial Officer Luca Maestri in a statement. "We are very pleased that our active installed base of devices reached a new all-time high across all products and all geographic segments, thanks to our high levels of customer satisfaction and loyalty."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $94.6 billion and earnings of $1.60 per share, according to CNBC. Meanwhile, Services revenue came in just below expectations of $25.3 billion.
Apple also said that iPhone sales increased 5.5% to $46.2 billion, Mac sales were up 1.7% to $7.7 billion and iPad sales rose 7.9% to $7 billion. On the other hand, Wearables, Home and Accessories sales decreased 3% from the year-ago period to $9 billion.
Analysts were anticipating iPhone revenue of $45.5 billion, Mac revenue of $7.8 billion, iPad revenue of $7.1 billion, and Other products revenue of $9.2 billion.
Is Apple stock a buy, sell or hold?
Apple is up nearly 18% for the year to date on a total return basis (price change plus dividend) and Wall Street sees even more upside for the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for AAPL stock is $241.84, representing implied upside of nearly 9% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Wedbush is one of the most bullish outfits on AAPL stock with an Outperform rating (equivalent to a Buy) and a Street-high $300 price target.
"In a nutshell, this was a rock-solid quarter for Apple, and the iPhone 16 launch appears to be off to a very good start," says Wedbush analyst Daniel Ives. "The step-by-step rollout of Apple Intelligence will result in a strong December quarter but will also flow into the March and June quarters, which should be good news for fiscal year 2025."
Related Content
- Stocks Warren Buffett Is Buying and Selling
- Analysts' Top S&P 500 Stocks to Buy Now
- Stock Picks That Billionaires Love
-
How to Add Your Driver’s License to Apple WalletTurn your iPhone or Apple Watch into a digital ID — here’s where it works and how to set it up.
-
Taylor Swift Can Shake Off Wedding Costs — But Most Couples Can't: The Price of Getting Married in 2025From engagement rings to bachelor parties, here's what it really costs to get married in 2025.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
DexCom, GE, SLB: Why Experts Rate These Stocks at Strong BuyWall Street gives these three diverse names Strong Buy recommendations with high potential upside.
-
Here's Why Munis Aren't Just for Wealthy Investors NowBuyers of all levels should be intrigued by municipal bonds' steep yield curve, strong credit fundamentals and yield levels offering an income buffer.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
The Smart Way to Retire: 13 Habits to Steal From the WealthyCheck out these practical strategies that anyone can adopt, not just the rich, and get closer to achieving your retirement dreams.
-
Are There Opportunities to Invest in China?Opportunities to invest in China are plentiful and, arguably, shouldn't be ignored in the U.S. Here's where to look.
-
Coulda, Woulda, Shoulda: Are These 5 Stocks Too Overvalued to Buy Now?Investors worried about missing the boat on overvalued stocks need not fret. These five names, while expensive, are still seeing lots of love from analysts.
-
I'm a Financial Planning Pro: Do Your Family a Final Favor and Write Them a Love LetterSpecify your preferences in this personal document that shares your wishes on how you want to be remembered and celebrated. Your family will thank you for easing an emotional time.
