Despite a beat on its Q4 quarterly earnings, Apple shares still managed to take a beating Thursday.
Shares are down 7 percent in after-hours trading after the company released its Q4 quarterly earnings report, detailing $62.90 billion in revenue beating analyst expectations of $61.57 billion, with earnings per share hitting $2.91 beating an expected $2.78 EPS. The results represent a 20 percent year-over-year growth in revenues at the company.
The reason for the after-hours drop? Apple forecasted weaker than expected earnings for the holiday quarter. While analysts were expecting revenue guidance to hit $93 million, Apple forecasts between $89 million and $93 million with a midpoint of $91 million according to Reuters.
Apple shipped 46.89 million iPhones this quarter, with unit sales staying flat but revenue jumping 29 percent, a result of Apple’s strategy this past year to hike prices of their most high-end devices. The average price of each unit was $793 versus $618 a year ago.
The company shipped 9.7 million iPads (a 6 percent decrease YoY with a 15 percent revenue decrease) and 5.3 million Macs (a 2 percent decrease YoY). Revenue on “Other Products,” which includes Apple Watch, Apple TV, HomePod, AirPods and Beats headphones, climbed 31 percent.
The company surprisingly announced on its investor call that in subsequent quarters it would stop breaking out unit sales of iPhone, iPad and Mac and would only report revenues. They will also be renaming “Other Products” to “Wearables, Home and Other Accessories.”