Apple, Inc.’s AAPL fiscal year 2024 first-quarter earnings report presented a mixed picture, prompting apprehensive traders to push the stock lower in premarket trading on Friday.
The company reported first-quarter earnings per share of $2.18 and revenue of $119.6 billion. These figures marked an increase from the year-ago quarter numbers of $117.2 billion and $1.88 per share, respectively, exceeding consensus estimates.
The year-over-year revenue growth helped Cupertino break a four-session streak of declining revenue.
However, the details revealed some challenges. China revenues experienced a 12.9% decline due to competitive pressure from Huawei, the U.S.-China standoff, and weak economic fundamentals, proving to be headwinds for the company in one of its key markets.
Additionally, the company issued soft guidance for the March quarter. CFO Luca Maestri, on the earnings call, mentioned that excluding an estimated $5 billion positive impact from the pent-up demand for the iPhone 14 and iPhone 14 Max in the March quarter, as it recovered from supply chain disruptions in the previous quarter, the 2024 second-quarter total revenue and iPhone revenue are likely to remain flat year-over-year.
Apple, which rallied 1.33% to $186.86 on Thursday, slipped 2.92% to $181.40 in Friday’s premarket trading, according to Benzinga Pro data.
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