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Apple (AAPL) Tops Q4 EPS by 13c, Service Revenues Reach $10 Billion

November 1, 2018 4:30 PM

(Updated - November 1, 2018 4:34 PM EDT)

Apple (NASDAQ: AAPL) reported Q4 EPS of $2.91, $0.13 better than the analyst estimate of $2.78. Revenue for the quarter rose 20% to $62.9 billion versus the consensus estimate of $61.57 billion. International sales accounted for 61 percent of the quarter’s revenue.

Services revenue reached an all-time high of $10 billion. Excluding a one-time favorable adjustment of $640 million recognized in the fourth quarter of fiscal 2017, Services revenue grew from $7.9 billion in the fourth quarter of fiscal 2017 to $10 billion in the fourth quarter of fiscal 2018, an increase of 27 percent.

The company sold 46.889 million iPhone units in the quarter.

“We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple’s history,” said Tim Cook, Apple’s CEO. “Over the past two months, we’ve delivered huge advancements for our customers through new versions of iPhone, Apple Watch, iPad and Mac as well as our four operating systems, and we enter the holiday season with our strongest lineup of products and services ever.”

“We concluded a record year with our best September quarter ever, growing double digits in every geographic segment. We set September quarter revenue records for iPhone and Wearables and all-time quarterly records for Services and Mac,” said Luca Maestri, Apple’s CFO. “We generated $19.5 billion in operating cash flow and returned over $23 billion to shareholders in dividends and share repurchases in the September quarter, bringing total capital returned in fiscal 2018 to almost $90 billion.”

GUIDANCE:

Apple sees Q1 revenue of $89-$93 billion, versus the consensus of $92.7 billion.

For earnings history and earnings-related data on Apple (AAPL) click here.

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