Apple’s (AAPL) fourth quarter earnings are out and shares are lower in after-hours trade.
The company’s earnings per share beat expectations, revenue was in-line with estimates, and the company raised guidance for its fiscal first quarter.
In after-hours trade, however, the stock was down about 2%. Immediately after the numbers crossed shares had risen as much as 3%.
Here are the key numbers from the report (estimates via Bloomberg):
Earnings per share: $1.67 ($1.65 expected)
Revenue: $46.9 billion ($46.9 billion expected)
iPhone units sold: 45.51 million (45 million expected)
iPhone average selling price: $618.72 ($625 expected)
iPad units sold: 9.3 million (9.1 million expected)
Mac units sold: 4.89 million (5.1 million expected)
Q4 gross margin: 38.9% (37.9% expected)
Q1 revenue guidance: $76-$78 billion ($75.3 billion expected)
Q1 gross margin: 38%-38.5% (38.9% expected)
“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” Apple CEO Tim Cook said in a statement.
“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record.”
Recall that Apple has been quite public about its desire to build out its services business into a “Fortune 100”-size business.
In a preview on Yahoo Finance out earlier today, Dan Howley outlined that this quarter is really all about iPhone sales, specifically to see if consumers have begun upgrading to the newly-released iPhone 7 model.
We’ll likely get more color on the company’s upgrade cycle on its earnings conference call, but Apple’s iPhone average-selling-price in the fourth quarter missed expectations, indicating demand for newer models may have not been as fervent as some expected.
Analysts were also looking to see if Apple would break out Apple Watch results for the first time. A report earlier this week suggested sales of the device have been quite poor.
These results were not broken out in the company’s earnings report. Markets are likely to take this as an indication the company isn’t keen on revealing these figures explicitly.
Looking to Apple’s balance sheet, the company’s cash position rose to nearly $238 billion as of quarter-end, up from around $231.5 billion at the end of the prior quarter.
Apple’s results in China — which were a major market focus over the last year — also disappointed with revenue hitting $8.8 billion in the fourth quarter, down 30% from the same quarter last year and down 1% from the third quarter.
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Myles Udland is a writer at Yahoo Finance.
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