Apple Shares Explode After Reporting Financial Results

Shares of iPhone maker Apple were soaring on Tuesday in after hours trading after the company reported financial results and guidance.

The results for the March quarter were in line with expectations and had an earnings beat. For the quarter, Apple reported EPS of $2.46 while analysts had been waiting for $2.36 according to Refinitiv consensus estimates.

Revenue at $58.02 billion was also higher than the $57.37 billion that was expected, however it was lower than the same period last year.

iPhone revenue for the second quarter was $31.05 billion compared to an expectation of $31.10 billion. Service revenue was $11.45 billion versus $11.37 billion expected.

Looking ahead, the company expects revenue of $52.5 billion to $54.5 billion for the third quarter while
analysts were waiting for $51.94 billion according to Refinitiv.

“The June guidance was a jaw dropper in terms of strength and speaks to Cook and Cupertino getting back their sea legs after the December debacle,” said Wedbush analyst Dan Ives.

Shares gained about 4% after the market close.

Apple’s CEO Tim Cook told Josh Lipton of CNBC, that the company’s performance in China had improved compared to the previous quarter and that a sales tax cut had helped decrease the price of Apple products. Cook also said that the trade relationship between the U.S. and China had improved as well.

“I believe that the trade relationship — I don’t mean the tariff, I mean the tone — is much better today than it was in the November-December time frame. That affects consumer confidence in a positive way,” Cook remarked.

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.