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
TheStreet Open House

Apple Shares Succumb to Panic Selling as Growth Slows (Update1)

(Story updated with conference call comments, dividend and share price.)

NEW YORK ( TheStreet) -- Apple's (AAPL) stock slid more than 10% after the technology company's revenue trailed forecasts, earnings per share fell and profit margins shrank.

Apple generated revenue of $54.5 billion in its fiscal first quarter, up from $46.33 billion a year earlier but below analysts' forecast of $54.73 billion. It earned $13.81 a share, down from $13.87 a year earlier yet above analysts' estimate of $13.47.

Investors dumped the stock. Apple was down to as low as $457.30 in after-hours trading, compared with $514 at the close. During the regular session, the shares climbed 1.8%.

The Cupertino, Calif.-based company, which has been stung by rumors of weaker demand, sold 47.8 million iPhones during the quarter, up from 37 million a year earlier.

Speaking during Apple's earnings conference call, CEO Tim Cook shrugged off speculation of a drop in orders. "I know there's been lots of rumors about order cut," he said in response to an analyst's question. "I would suggest it's good to question the accuracy of any kind of build plans."

Cook said Apple's supply chain is complex, relying on many sources.

The Apple CEO said the company wouldn't sacrifice product quality for market share, echoing sentiments of Steve Jobs, the late co-founder and CEO. "The most important thing to Apple is to make the best products in the world that enrich customers' lives," he said in response to another analyst's question. "We aren't interested in revenue for revenue's sake."

During its fiscal first quarter, Apple sold 22.9 million iPads, compared with 15.4 million a year earlier; 4.1 million Macs, down from 5.2 million; 12.7 million iPods, down from 15.4 million.

Apple's gross margin was 38.6% compared with 44.7% in the year-ago quarter.

For its fiscal second quarter, which ends March 31, Apple forecast revenue between $41 billion and $43 billion, a gross margin between 37.5% and 38.5%, and operating expenses between $3.8 billion and $3.9 billion.

Analysts surveyed by Thomson Reuters had forecast revenue of $45.38 billion.

The company's board also declared a quarterly cash dividend of $2.65 a share.

-- Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs