No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Apple dropped sharply after the opening bell on Friday after the iPhone maker beat forecasts with its third-quarter results but disappointed investors with guidance for the current quarter.
Citing "supply constraints", as the tech giant contends with chip and memory shortages, revenues for the fourth quarter are now expected to grow by just 9-11% year-on-year, below the current consensus forecast of 12%.
The news overshadowed an otherwise strong earnings report, with revenues rising 16% to $109.4bn, topping the $108.7bn consensus estimate on the back of a 22% jump in iPhone sales to $54.3bn. Mac and Wearables revenues also topped estimates, though iPad revenues came up short.
Gross margins improved to a record 50.06%, helped by a 2 percentage point favourable impact from tariff refunds.
That helped drive net income to $29.8bn from $23.4bn a year earlier. Earnings per share rose 29% to $2.02, more or less in line with estimates when excluding the 11cents-a-share tariff refund boost.
"Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment," said Apple boss Tim Cook.
In a broker note following the results after the close on Thursday, Barclays maintained an 'underweight' rating on the stock and cut its target price to $245 from $253. Both Goldman Sachs and Morgan Stanley lowered their target prices to $360, but reiterated positive recommendations on the stock.
Apple shares were down 9.3% at $302.53 by 1520 BST, pulling back after having gained nearly a quarter so far this year.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.