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Apple: Third quarter earnings miss the mark

Apple: Third quarter earnings miss the mark and shares drop.

Apple iphone 5 releaseEnlarge
Apple will reportedly unveil its next iPhone in late September. (AFP/Getty Images)

Before Apple posted its third quarter financial results, Reuters ran this headline today: "Apple heads into choppy waters as new iPhone awaited." 

Later in the afternoon, Apple released the data. The Telegraph provided the cliff notes: 

• Apple revenues of $35 billion in the third quarter, profits of $8.8 billion
• Revenues fall $4 billion, profits $3 billion from quarter two
• Sells 26 million iPhones, down from 35.1 million in quarter two
• Sells 17 million iPads, up from 11.8 million in quarter two
• Apple reveals dividend of $2.65 per share

These numbers mean Reuters' analysis was correct.

It was expected that consumers, giddy for the new iPhone 5, would wait to buy. That means Apple sold less iPhones in the third quarter. Hence, "Sells 26m iPhones, down from 35.1m in Q2."

The result: Apple shares took a hit.

According to the Wall Street Journal, "Apple results sharply missed analysts’ expectations."

So basically Apple made less money than analysts previously speculated. As Reuters explains, Apple "said fiscal third-quarter revenue rose to $35 billion, much lower than the average analyst estimate of $37.22 billion, according to Thomson Reuters I/B/E/S."

http://www.globalpost.com/dispatch/news/business/companies/120724/apple-third-quarter-earnings-miss-the-mark