Apple, Inc. (NASDAQ: AAPL) released its third quarter earnings Tuesday after the market closed and topped estimates of analysts, reaching an all time high.
Shares skyrocketed, as they shot up over 6 percent during after hours. The company had beat estimates in both revenue and earnings.
The tech company posted $45.4 billion versus $44.89 billion projected by a Thomson Reuters consensus.
The company posted an adjusted EPS of $1.67 per share versus $1.57 per share projected by a Thomson Reuters consensus estimate.
Apple posted earnings well above expectations due to the amount of iPhones the company had sold. The company had sold 41 million iPhones in the third quarter versus 40.7 million estimate by a consensus by StreetAccount.
With 41 million iPhones sold in the third quarter, Apple announced it has sold over a total of 1.2 billion iPhones now.
iPhone alone accounted for 54 percent of revenue. International sales accounted for 61 percent of revenue. Total revenue globally for the giant tech company is now 7 percent up year over year.
“With revenue up 7 percent year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” said Tim Cook, Apple’s CEO. “We hosted an incredibly successful Worldwide Developers Conference in June, and we’re very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall.”
With the third quarter ending, all eyes are set for the fourth quarter and the new iPhone 8 coming.
Although there is many questions and doubt about the iPhone 8, Apple provides guidance for the fourth quarter that looks to be promising for investors.
"Well, I mean it's certainly better than expected, but ultimately I really don't think it matters that much," Ian Winer, co-head of equities at Wedbush, told CNBC's "Closing Bell" on Tuesday. "I think what matters is, when is the iPhone 8 actually going to get released? And what are people going to do with it? And ultimately the question is, are people going to pay $1,100 for a new phone or are they not? And ... is this the new iPhone super cycle or is it not?"
Here’s what Apple projects for the fourth quarter, according to its earning reports for the third quarter.
- revenue between $49 billion and $52 billion
- gross margin between 37.5 percent and 38 percent
- operating expenses between $6.7 billion and $6.8 billion
- other income/(expense) of $500 million
- tax rate of 25.5 percent