Apple beats estimates with $61bn quarter

APPLE reported revenue and profit that beat analysts’ estimates and projected continued sales momentum, calming concern about demand for the iPhone, its most-important product.

The California-based company also raised its dividend, unveiled a new $100bn (€83bn) share buyback and said services sales jumped 31pc.

Apple shares rose 3pc in extended trading, after closing at $169.10 in New York. The stock had fallen in recent weeks on concern about demand for the flagship iPhone X.

Apple revenue rose 16pc to $61.1bn in the fiscal second quarter. That was the fastest growth in more than two years. Profit came in at $2.73 a share, the company said. Analysts expected sales of $60.9bn and earnings per share of $2.64, according to data compiled by Bloomberg.

Fiscal third-quarter revenue will be $51.5bn to $53.5bn, also ahead of Wall Street forecasts.

“The guidance for the third quarter alleviates investor concerns on iPhone shipments,” said Shannon Cross of Cross Research. “It was a solid quarter.”

Apple sold 52.2 million iPhones in the fiscal second quarter, up 2.9pc from a year earlier. Analysts had projected 52.3 million, on average, although some investors expected fewer units. The average selling price was $728, versus analysts’ expectations of $740. That suggested the flagship iPhone X didn’t perform as well as anticipated.

Earlier this year, chief financial officer Luca Maestri said iPhone revenue would grow by at least 10pc year-over-year in the fiscal second quarter. Apple easily hit that goal, with 14pc iPhone revenue growth in the period. Mr Maestri said yesterday the iPhone X was Apple’s top-selling model in the quarter.