Apple (AAPL) Slammed on Ho-Hum Q3 EPS, Weaker iPhone and Watch Sales

iPhone giant Apple (NASDAQ: AAPL) is immediately trading off 7% after-hours Tuesday following third quarter results that were relatively in-line with Street estimates and iPhone and Watch units that missed the Street. The report did little to quell fears about slowing China growth.

Apple reported Q3 EPS of $1.85, $0.04 better than the analyst estimate of $1.81. Revenue for the quarter came in at $49.6 billion versus the consensus estimate of $49.31 billion. Apple normally beats the Street by about 10% on EPS.

iPhone units were 47.53 million versus the consensus of 48-49 million. Other units, including Watch, were 2.64 million versus the consensus of about 3 million for Watch alone.

Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter.

International sales accounted for 64 percent of the quarter’s revenue. Greater China revenues were $13.23 billion in the quarter, down 17% from the $16.82 billion in Q2 2015 but up 112% from the $6.23 billion in the same quarter last year.

Apple sees fourth quarter revenue between $49 billion and $51 billion (consensus is $51.05 billion).

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