Apple exceeded expectation in third quarter earnings

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Apple exceeded Wall Street expectations in its third-quarter 2023 results, with earnings and sales surpassing estimates. The impressive performance was primarily driven by a notable 8% growth in services sales compared to the previous year.

However, despite the overall positive outcome, the company's total sales saw a slight 1% decline year over year. Notably, revenue from iPhone, Mac, and iPad lines also dropped when compared to the previous year's figures.

Here's a breakdown of how Apple's performance

• Earnings Per Share (EPS): Actual $1.26 vs. Estimated $1.19

• Revenue: Actual $81.8 billion vs. Estimated $81.69 billion, representing a 1% decrease

• iPhone Revenue: Actual $39.67 billion vs. Estimated $39.91 billion, reflecting a 2% decrease

• Mac Revenue: Actual $6.84 billion vs. Estimated $6.62 billion, indicating a 7% decrease

• iPad Revenue: Actual $5.79 billion vs. Estimated $6.41 billion, showing a significant 20% decrease

• Other Products Revenue: Actual $8.28 billion vs. Estimated $8.39 billion, with a 2% increase

• Services Revenue: Actual $21.21 billion vs. Estimated $20.76 billion, demonstrating an 8% increase

• Gross Margin: Actual 44.5% vs. Estimated 44.2%

Apple did not provide official guidance, citing uncertainty since 2020. However, the company offered some insights into the current quarter's outlook, which indicated an anticipated revenue decline for the September quarter. This additional information contributed to the further decline in the company's stock value.