This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Blames Europe, Speculation for Third-Quarter Miss

Updated from 4:55 p.m. EST to provide executive comments from the conference call in the fifth paragraph, and analyst comments in the sixth and ninth paragraphs.

NEW YORK ( TheStreet) -- Shares of Apple (AAPL - Get Report) fell in late trades Tuesday after the iconic gadget maker missed Wall Street's expectations for its fiscal third-quarter results on both the top and bottom lines and gave weak guidance.

The stock was last quoted at $570, down 5.2%, on after-hours volume of nearly 4.2 million, according to

After blowing past consensus views last quarter, the Cupertino, Calif.-based company reported earnings of $9.32 per share on revenue of $35.02 billion for the three months ended in June. Analysts polled by Thomson Reuters were expecting a profit of $10.37 per share on revenue of $37.18 billion.

"We're thrilled with record sales of 17 million iPads in the June quarter," said Tim Cook, Apple's CEO. "We've also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we've got in the pipeline."

CFO Peter Oppenheimer cited several reasons during the earnings call for the revenue and earnings miss, including economic weakness in Europe, Australia, Canada, and Brazil. He also said consumer speculation about new products was delaying some purchasing and that a delay with Intel's (INTC) Ivy Bridge chips hurt Mac sales in April and May.

Oppenheimer also noted a later portable lineup refresh this year, as well as continued strength in the U.S. dollar, which impacted revenues by over $200 million, net of hedges.

Bill Kreher, technology analyst at Edward Jones, said Apple is not immune to the global economy. "It appears that even Apple is susceptible to weakness, particularly in Europe," Kreher said in a phone interview with TheStreet.

The company also gave some specifics on its planned quarterly dividend of $2.65 per share, saying it's payable on Aug. 16 to shareholders of record on Aug. 13.

Apple's outlook was a letdown as well. "Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65," said Oppenheimer in a statement.

That view is below the current consensus expectations for earnings of $10.23 per share on revenue of $38.03 billion in the September-ending period. Kreher of Edward Jones attributed the weaker guidance "to a pause ahead of an iPhone 5 launch in October."

Apple shares closed Tuesday's regular session at $600.92, down nearly 3% on the day. Based on its closing price, the stock was up more than 45% so far in 2012 but it had pulled back since hitting an all-time high of $644 on April 10.

Interested in more on Apple? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs