Investing.com – Apple reported better-than-expected fourth-quarter results that beat Wall Street estimates, but a larger drop in iPhone revenue and lack of guidance spooked investors.
Apple shares (NASDAQ:AAPL) lost 3.5% in after-hours trade following the report.
Apple announced earnings per share of $0.73 on revenue of $64.70B. Analysts polled by Investing.com anticipated EPS of $0.71 on revenue of $63.98B.
iPhone revenue, which makes up about half of total revenue, fell to $26.4 billion from $33.4 billion a year earlier, missing estimates of $27.93 billion. The lower-than-expected figure comes as consumers are expected to have waited to buy the iPhone 12, which was launched last month.
Revenue from Apple’s service business including Apple News, Apple TV+ and iCloud, grew to $14.55 billion from $12.5 billion, beating estimates of $14.12 billion.
Wearables, home and accessories generated $7.88 billion in revenue, up from $6.52 billion, beating consensus of $7.23 billion.
The tech giant did not provide guidance.
“Apple remains an attractive stock to buy even after its 57% rally this year. The company’s innovation machine, its expanding services segment and its wearable devices offer solid reasons to remain bullish on future growth. The company’s recent product launches, including its 5G phones, show that the company is on the right track to monetize its massive installed base. Any post-earnings weakness should be taken as a buying opportunity,” Investing.com’s Haris Anwar said.