Apple on Thursday reported better-than-expected fiscal fourth-quarter earnings, but its fiscal first-quarter guidance failed to meet analysts’ expectations.
For the quarter ended in September, the tech titan took in $62.9 billion in revenue, which represented a 20% increase, year-over-year. During the same period, earnings per share increased 41% to $2.91.
Yet, for the quarter ending in December, Apple is forecasting revenue between $89 billion and $93 billion, which falls short of what Wall Street was anticipating. CEO Tim Cook blamed poor guidance on slowing sales in emerging markets and foreign exchange costs.
However, Cook focused on Apple’s strong fourth quarter on Friday. “We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018,” Cook said in an earnings statement.
During the most recent quarter, Apple said it sold nearly 47 million iPhones at an average selling price of $793.
Going forward, Apple said it will no longer report device sales, because such figures no longer reflect the company’s health as more customers buy bundled products.
Analyst reactions to Apple’s latest earnings report were mixed.
“We view the new product line as a positive step forward in improving Apple’s overall (average selling price) trajectory,” Katy Huberty, a Morgan Stanley analyst wrote in a note to investors.
Bank of America analyst Wamsi Mohan struck a less sanguine note. “We see increased risk from a weaker macroeconomic environment,” Mohan said in a research note. “We are incrementally concerned that not all the weakness is captured in the [near term] and we are likely to see further negative estimate.”