Updated at 5:03 pm EST
Apple Inc. (AAPL) – Get Apple Inc. Report posted better-than-expected third quarter earnings Thursday as the tech giant said the anticipated supply chain hit was lighter than it had forecast while China sales held up despite the country’s spring Covid lockdown.
The group also hinted that it would likely plan price increases for certain hardware items in overseas markets in order to compensate for the surging U.S. dollar, which has risen more than 13% so far this year and reached a two-decade peak against its global peers earlier this month.
Apple earned more than $19.44 billion for the three months ending in June, the group’s fiscal third quarter, as revenues rose 2% from last year to $82.96 billion, just ahead of analysts’ estimates of $82.88 billion. Apple said iPhone revenues rose 2.8% from last year to $40.67 billion, just ahead of the $40.5 billion Street forecast.
China sales fell 1% to $14.6 billion, Apple said, while revenues from its key services business rose 12% to $19.6 billion.
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Bottom line earnings were pegged at $1.20 per share, down 7.7% from the same period last year and just ahead of the Street consensus forecast of $1.16 per share.
“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said CEO Tim Cook. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”
Apple shares were marked 4.1% higher in after-hours trading immediately following the earnings release to indicate a Friday opening bell price of $163.77 each.
Net sales for the Mac were down 10.4% to $7.38 billion, while wearable, home and accessories sales, which include the AppleWatch, fell 8% to $8.08 billion. Supply chain constraints pulled iPad revenues 2% lower to $7.22 billion.
Cook had warned earlier this year that that Covid and supply chain disruptions around what he called the “Shanghai corridor”, as well as Russia’s war in Ukraine, would clip between $4 billion and $8 billion from second quarter revenues, but noted today that the impact was at the lower end of that guidance, although he declined to provide specifics.
