Apple's Q1 Earnings Boosted By Strong iPhone, Services Sales

Apple Inc. AAPL shares traded higher Tuesday after the company posted fiscal first-quarter earnings and sales beats, and issued second-quarter revenue guidance above estimates.

Earnings came in at $4.99 per share, beating analysts' expectations of $5.45 by nearly 10%. Sales came in at $91.82 billion, which beat the analyst consensus estimate of $88.43 billion by 3.83%.

Apple reported EPS of $4.18 per share in the same quarter a year ago. Revenue in last year's same quarter was $84.31 billion.

First-quarter services revenue came in at $12.72 billion, up 17% year over year. iPhone sales totaled $55.96 billion, up 7.6% year over year, while wearables, home and accessories sales were also up, 37% year over year. Greater China sales were up 3% over the same quarter last year.

The company expects to pass 500 million subscribers to Apple and third party services in early 2020, and is upping its subscriber goal for the full year to 600 million.

Guidance

For the second quarter, Apple sees sales of $63 billion to $67 billion, ahead of the $62.45 billion Street estimate. Apple said, however, it was giving a wider revenue forecast range than is typical, because of uncertainty around the Chinese economy as the country deals with a coronavirus outbreak.

Apple shares had rallied to new all-time highs in the month leading up to Tuesday's print, even as the broader market was beset by concerns over the potential impact of the Wuhan coronavirus on the Chinese economy.

Apple's stock closed Tuesday at $317.69 per share and was trading up 2.2% after-hours to $324.90.

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