Apple once again posted an, until now, rare revenue decline in its latest fiscal quarter, but said its overall business improved from the December quarter and sales of its iPhones were solid.
The results reported Thursday were better than Wall Street's muted expectations and Apple's stock rose in after-hours trading.
The latest numbers come after the Cupertino, California, company in February posted its first quarterly revenue drop in nearly four years after pandemic-driven restrictions on its China factories curtailed sales of the latest iPhone during the holiday season.
Apple said it earned $24.16 billion, or $1.52 per share, in the three-month period that ended April 1. That was down slightly from $25.01 billion, also $1.52 per share, a year earlier.
Revenue fell 3% to $94.84 billion from $97.28 billion.
Analysts, on average, were expecting earnings of $1.43 per share on revenue of $92.91 billion, according to a poll by FactSet.
For the current, fiscal third quarter, Apple said it expects revenue performance to be “similar” to the second quarter. Analysts are forecasting $84.5 billion, which is well below what Apple is suggesting.
Apple said iPhone sales brought in $51.33 billion in revenue in the first quarter. Analysts expected a more modest $48.66 billion. Revenue in its key services division was $20.91 billion, slightly above Wall Street's estimates of $20.66 billion.
CEO Tim Cook said in a conference call that Apple is seeing “ongoing challenges" related to the broader economic environment but the company continues to “manage for the long term.”
Unlike many of its tech industry peers, Apple hasn’t signaled any intention to resort to mass layoffs. Industry giants such as Google parent Alphabet, Microsoft, Amazon and Facebook parent Meta Platforms have announced plans to jettison tens of thousands of employees in recent months as they adjust to revenue slowdowns or downturns caused by people’s lessening dependence on the digital realm as pandemic restrictions have eased.
Wedbush analyst Dan Ives said Apple delivered a “LeBron-like March,” referring to the basketball star LeBron James.
“The iPhone beat was front and center,” Ives said, adding that it's a clear indication that the company is continuing to gain market share in China.
The company said its board also approved a $90 billion share buyback program and raised its regular quarterly dividend by 4% to 24 cents a share.
Apple's shares climbed about 2% in after-hours trading.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
