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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
7 Dr. Seuss Quotes Retirees Should Live ByYou're off to great places! Why Dr. Seuss is the retirement guru you didn't know you needed.
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
Past Performance Is Not Indicative of Your Financial Adviser's Expertise
Many people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the CaseA retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
