Apple, Inc. AAPL reported a "Lebron-like" March quarter, with both top- and bottom-line beats, Wedbush analyst Daniel Ives said in a note reviewing the fiscal year second quarter results.
What Happened: "Cupertino [is] a key barometer of overall consumer spending globally and for China in particular," the analyst said.
The iPhone beat is clearly an indication of market share gains in China, Ives said. The upgrade activity likely was strong in the quarter and overall ASPs may have been above $900, he added.
The analyst noted that iPad revenue fell 13% year-over-year to $6.67 billion, a tad below the consensus of $6.69 billion, and Mac revenue plunged 31% to $7.17 billion versus consensus of $7.80 billion.
Wearables revenue came in at $8.76 billion above the Street's estimate of $8.43 billion, he said. The Services business' revenue of $20.91 billion came in line with the Street’s estimate of $20.97 billion, he added.
Ives also noted that the gross margin of 44.3% was higher than the consensus of 44.1%.
China region revenue, though dropping 3% year-over-year to $17.81 billion, saw a nice uptick from the doldrums seen in the December quarter, he said.
The analyst also noted that Apple's additional $90 billion stock buyback authorization will be music to the ears of the Street.
Ives maintained an Outperform rating and $205 price target for the stock.
Price Action: In after-hours trading, Apple stock rose 2.30% to $169.60, according to Benzinga Pro data.
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