Street Finds a Few Worms in Apple

Updated from 7:42 a.m. EDT

Apple's (AAPL Quote) second-quarter earnings topped Wall Street's estimates by 10 cents a share, and the company offered an earnings outlook that was better than expected. But investors weren't impressed, selling off the stock.

Shares of Apple were recently off $2.55, or 6.2%, to $38.48 in early trading Thursday.

Indeed, despite the strong results, analysts on a conference call found a number of items to quibble with. For instance, the company's third-quarter guidance -- while above the Street's estimates -- implies that sales will be flat compared with the second quarter and earnings will decline, several analysts noted. Some also observed that Apple's share count ballooned 13% in the quarter, diluting earnings. ...