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Apple logo. (Photo = Apple) |
[Alpha Biz= Reporter Kim Jisun] Apple, the world’s most valuable company, reported earnings that exceeded market expectations due to strong iPhone sales. However, a $10.2 billion tax payment in Europe has led to a decline in profit margins, causing a roughly 2% drop in after-hours trading.
As of October 31, Apple shares fell 1.95% to $221.50 in after-hours trading on the New York Stock Exchange, following a 1.82% decline during regular trading due to a sell-off in tech stocks.
The company announced quarterly revenue of $94.9 billion, surpassing analysts' expectations of $94.5 billion. Notably, iPhone sales reached $46.2 billion, exceeding the forecast of $45.4 billion and representing a 6% year-over-year increase.
Apple also reported adjusted earnings per share of $1.64, which was above the market expectation of $1.60.
Despite these positive results, Apple disclosed that it had to pay $10.2 billion in taxes while resolving a long-standing lawsuit dating back to 2016 in Ireland, which impacted profit margins.
Following this news, Apple's stock experienced a 2% decline in after-hours trading. However, CEO Tim Cook stated during the earnings call that the recently launched iPhone 16 is performing better in sales compared to the iPhone 15, raising hopes for increased revenue from the new model.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
