Apple Q3 Profit, Revenues Beat Wall Street Estimates, Outlook Strong

(RTTNews) - Apple Inc.'s (AAPL) earnings and revenues for the third quarter trounced Wall Street estimates on Tuesday, as the tech giant reported its best ever June quarter, helped by demand for its pricier iPhone X and its services. The company also issued a strong outlook for the fourth quarter.

Apple sold 41.30 million iPhone units during quarter, generating $29.91 billion in revenues, up from 41.03 million units and $24.85 billion in revenues last year.

Although, iPhone units sales for the quarter only increased a mediocre 1 percent, iPhone revenues increased a sharp 20 percent largely helped by iPhone X, which carries a significant price premium over the iPhone 8 and previous models.

"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth," said Tim Cook, Apple's CEO. "Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline."

Apple's bottom line continues to be buoyed by iPhone sales, as it contributes about two-thirds of Apple's revenues and a major part of its profit.

Apple reported "revenue growth in each of our geographic segments," according CFO Luca Maestri.

Meanwhile, Apple's services business, which includes digital content and other services, revenues surged 31 percent to $9.55 billion.

Apple reported third-quarter profit of $11.52 billion or $2.34 per share, up from $8.72 billion or $1.67 per share last year. Analysts had expected the company to earn $2.18 per share, according to figures compiled by Thomson Reuters.

Apple said its revenues rose 17 percent to $53.27 billion from last year's $45.41 billion. Analysts had a consensus revenues prediction of $52.34 billion.

Looking forward to the fourth quarter, Apple expects revenue between $60 billion and $62 billion. Analysts currently project revenues of $59.57 billion.

Apple also declared a cash dividend of $0.73 per share, payable on August 16 to shareholders of record on August 13.

AAPL closed Tuesday's trading at $190.29, up $0.38 or 0.20% on the Nasdaq. The stock further gained $4.91 or 2.61% in the after-hours trade.