Apple (AAPL) stock experienced a 2% decline in pre-market trading on Friday following the release of their earnings report, which surpassed expectations but revealed a cautious outlook for the current quarter.
In the fiscal fourth quarter, Apple reported earnings per share of $1.46 on $89.5 billion in revenue. Analysts had estimated earnings per share to be $1.39 with revenue reaching $89.3 billion. This marks the fourth consecutive quarter in which revenue has declined from the previous year.
The company reported that iPhone sales reached $43.8 billion in the fourth quarter, slightly exceeding expectations and setting a new record for iPhone sales during this period. Services revenue also exceeded $22 billion for the first time.
However, revenues in the Mac, iPad, and Wearables categories decreased from the same quarter last year. For the entire fiscal year, Apple reported total revenue of $383.3 billion, a decrease from $394.3 billion in the prior year.
During a call with analysts, Apple CFO Luca Maestri stated that the company anticipates revenue in the current quarter to be similar to last year. Maestri also mentioned that revenue for the Mac, iPad, and Wearables categories is expected to decline significantly from the fourth quarter.
Analysts on Wall Street had projected revenue for the current quarter to be $122.8 billion, based on data from Bloomberg. In the December quarter of the previous year, Apple reported revenue of $117.2 billion.
In an interview with Yahoo Finance, Maestri attributed the anticipated decline in Mac sales to market conditions and the challenging comparisons to the previous year. He added that Apple continues to attract new buyers to the Mac, with approximately half of the buyers being new to the product in the quarter.
Apple expects revenue in the current quarter to increase from last year in the iPhone segment.
Apple’s latest results also highlighted that its home market, the Americas region, achieved revenue growth in the fourth quarter, making it the only major geography to experience year-over-year revenue growth.
Here are some key highlights from Apple’s quarter compared to Wall Street expectations:
- Revenue: $89.5 billion versus $89.34 billion expected ($90.15 billion in Q4 2022)
- Adj. EPS: $1.46 versus $1.39 expected ($1.29 in Q4 2022)
- iPhone revenue: $43.8 billion versus $43.73 billion expected ($42.63 billion in Q4 2022)
- Services revenue: $22.3 billion versus $21.36 billion expected ($19.19 billion in Q4 2022)
- Mac revenue: $7.6 billion versus $8.76 billion expected ($11.51 billion in Q4 2022)
- iPad revenue: $6.4 billion versus $6.33 billion expected ($7.22 billion in Q4 2022)
- Wearables revenue: $9.3 billion versus $9.41 billion expected ($9.65 billion in Q4 2022)
Apple’s earnings report follows the recent launch of their latest MacBook Pro lineup and updated iMac during the ‘Scary Fast’ virtual event on Halloween eve.
Josh Lipton contributed reporting
Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on Twitter @hshaban.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
