Apple Inc (NASDAQ:AAPL) After Market Trading
The after market trading for Apple Inc (NASDAQ:AAPL) stocks dipped on Monday, as investors were disappointed with the company’s fiscal third quarter results. Although sales of Macs and iPads were up, other business segments saw significant drops.
This was in part due to the increased uncertainty surrounding the future of the Chinese economy. As a result of these trends, Apple’s revenue guidance was cut. Previously, the company had predicted that it would have revenue between $89 billion and $93 billion for the quarter. Now, it expects to generate $41.5 to $42.5 million in margins, according to Luca Maestri, the chief financial officer for Apple.
While Wall Street analysts have forecasted that Apple will post a profitable $1.31 per share for the first quarter of its fiscal year 2023, Needham lowered its estimate. However, the firm still thinks that the tech giant’s growth will be strong. It also believes that the company is making progress in building strategic partnerships with other companies to enhance its viewership. During the conference call, CEO Tim Cook discussed the company’s operations, and he reassured investors.
Overall, the company’s revenue for the quarter ended September 30 was down 4.8% from last year. Sales were down 10% for Macs, 2% for iPads, and 8% for wearables, homes, and accessories. In its services segment, Apple reported $19.6 billion in sales. These were down compared to the previous year, as the company cited supply constraints and increased consumer uncertainty in the emerging markets.
For the entire fiscal year, Apple expects to generate revenue in the range of $99 billion to $104 billion. Revenue guidance was cut by 4.8% from a year ago. This was mainly because of the challenges faced by the company in China and other emerging markets. Aside from the lower forecast, the company expects to see margins between 41.5 percent and 42.5 percent.
With a number of other major companies reporting earnings during the after-market hours, analysts will look for signs of progress. If the numbers are good, the stocks could move higher. However, if they are not, investors should stay vigilant. Apple shares have already declined nearly 15 percent this year, and could drop even further if the company’s forecast is not met. However, the company’s CEO has said that the company is on the right track and is optimistic about the Mac and iPad sales.