Apple Plunges on Sales Warning, Vindicating Newton

Apple (AAPL Quote) reported fiscal third-quarter earnings that exceeded Wall Street's expectations after the bell Tuesday. But the shares fell after the company offered a cautious outlook that will likely leave it shy of its full-year target.

For the period ended June 30, the Cupertino, Calif.-based computer maker said it earned $61 million, or 17 cents a share. That figure surpassed expectations of analysts polled by Thomson Financial/First Call by 3 cents, but plunged 69% from the year-ago period, when Apple posted income of $200 million, or 55 cents a share.

Sales came in about $75 million light, totaling $1.48 billion. Gross profit margins slipped to 29.4% from 29.8% a year ago. ...