Apple (AAPL) Stock: Climbing On Earnings Beat

Apple Inc AAPL Stock NewsApple Inc. (NASDAQ: AAPL) is having an incredibly strong start to the trading session in the pre-market hours this morning after the company released its earnings results. Of course, the results were positive, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about:

  • What we saw from earnings;
  • what we’re seeing from AAPL stock as a result; and
  • what we’ll be watching for ahead.

AAPL Reports Earnings

As mentioned above, Apple is having an incredibly strong start to the trading session after reporting earnings. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, AAPL definitely did not disappoint. During the quarter, the company generated earnings in the amount of $2.34 per share. The FactSet survey projected that the company would generate earnings in the amount of $2.16 per share.
  • Revenue – Revenue also proved to be a strong point for the company. During the quarter, analysts expected that the company would generate $52.3 billion in total revenue. However, the company actually generated revenue in the amount of $53.3 billion.
  • iPhone – In terms of iPhone sales, we saw some mixed results. While the company fell short of analyst expectations with regard to unit sales volume, where the company did well was average selling price. During the quarter, analysts projected that the company would see an average iPhone selling price of $693 per unit. However, the company actually sold iPhones with an average price per unit of $724.
  • Guidance – Finally, AAPL provided strong guidance. For the current quarter, the company is expecting to generate between $60 billion and $62 billion in revenue. That figure came in well ahead of analyst expectations of $59.5 billion.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Apple, the news proved to be overwhelmingly positive. After all, both earnings and revenue came in ahead of projections and the company generated guidance that produced a positive surprise as well. So, it comes as no surprise to see that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:49), AAPL is trading at $198.40 per share after a gain of $8.11 per share or 4.26% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on AAPL. In particular, we’re interested in seeing if the company can maintain the strong growth that it saw during the quarter. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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