Apple Beats Expectations -- July 26, 2016

Wow, wow, wow. I don't know if folks have been paying attention but the talk on "the street" was that a) Apple was in trouble; and b) that Apple was going to miss expectations. In fact ... drum roll ... Apple third quarter tops reduced expectations:

Apple (AAPL) shares popped after reporting a better-than-expected third quarter after the market close on Tuesday.

Revenues declined 15% to $42.4 billion but beat estimates of $42.1 billion. The 13% year-over-year revenue decline last quarter marked the first quarterly revenue decline since 2003.

EPS of $1.42 also beat expectations for $1.38, marking a decline from $1.85 a year ago.

iPhones, which represent two-thirds of the company’s revenues, beat expectations this quarter, with the company selling 40.4 million iPhones versus expectations for 40.2 million units.

“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said CEO Tim Cook in the company’s press release. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”

Gross margin came in at 38%, down from 39.7% last year, but ahead of consensus estimates of 37.96%.

I can't wait to read the comments at the story.

This is the best comment: "Congratulations, longs! Up 7% in after-hours trading. Short covering tomorrow. Enjoy the ride."

Note: this is not an investment site. Do not make any investment, financial, travel, job, or relationship decisions based on what you read here. If this is important to you, go to the sourse. I talk about Apple because a) I love the company; b) I love the products; and, c) since 1984, have been known as Fanboy #3.