“Apple shares were down nearly 5% in midday trading Wednesday, after the consumer electronics giant late Tuesday posted a rare miss in quarterly sales and earnings,” Patrick Seitz reports for Investor’s Business Daily.
“The Cupertino, Calif.-based company earned $9.32 a share, up 20% from a year ago, on sales of $35 billion, up 22%, for the quarter ended June 30. Analysts polled by Thomson Reuters expected EPS of $10.37 on sales of $37.2 billion,” Seitz reports. “It was Apple’s slowest profit and sales growth in nearly three years. Apple’s guidance for the current quarter also was well below analyst targets.”
Here are five key take-aways from Apple’s fiscal Q3 report:
1. IPhone 5 rumors impacted sales
2. Fall product transition will pinch Q4 margins
3. Apple is not immune to global economic woes (sales in Western Europe were weak)
4. Customers buying cheaper iPhones, iPads
5. Schools are buying lots of iPads
Read more in the full article here.
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