After delivering better-than-expected results for the September quarter, consumer electronics giant Apple (AAPL) warned of a slowdown ahead for the December quarter. Still, Apple stock rose on Friday.
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The Cupertino, Calif.-based company late Thursday said it earned $1.29 a share on sales of $90.1 billion in its fiscal fourth quarter ended Sept. 24. On a year-over-year basis, Apple earnings rose 4% while sales climbed 8%.
However, on a conference call with analysts, Chief Financial Officer Luca Maestri forecast slower sales growth for the holiday quarter.
“Overall, we believe total company year-over-year revenue performance will decelerate during the December quarter as compared to the September quarter,” Maestri said. He cited foreign exchange headwinds and an expected decline in Mac computer sales.
“On Mac, in addition to increasing FX headwinds, we have a very challenging compare against last year, which had the benefit of the launch and associated channel fill of our newly redesigned MacBook Pro with M1,” Maestri said. “Therefore, we expect Mac revenue to decline substantially year over year during the December quarter.”
Apple Stock Climbs After Report
Also, Apple expects the macroeconomic environment to pressure growth in its services business, including digital adverting and gaming, he said.
In morning trades on the stock market today, Apple stock rose 4.2% to 150.82.
On the earnings call, Chief Executive Tim Cook noted that Apple is supply-constrained on several new products. He said the company hasn’t been able to make enough iPhone 14 Pro models and the Apple Watch Ultra wearables to meet demand.
At least five Wall Street analysts cut their price targets on Apple stock after the company’s fiscal Q4 report.
Apple stock has been consolidating for the past 43 weeks with a buy point of 183.04, according to IBD MarketSmith charts. It has an IBD Composite Rating of 76 out of 99, says IBD Stock Checkup.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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