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Updated from Tuesday, July 26

NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Apple Inc. Report  were spiking 6.6.6% in premarket trading on Wednesday after the tech giant posted higher-than-expected results for its fiscal third quarter.

After Tuesday's market close, the Cupertino, Calif.-based company reported earnings of $1.42 per diluted share, surpassing analysts' estimates of $1.38 per share.

Revenue came in at $42.4 billion, topping analysts' projections of $42.1 billion.

Apple sold 40.4 million iPhones during the quarter, above Wall Street's estimates of 40.02 million, Reuters noted.

"We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter," CEO Tim Cook said in a statement.

For the fourth quarter, the company sees revenue between $45.5 billion to $47.5 billion. Analysts are looking for revenue of $45.7 billion.

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About 42.29 million of Apple's shares were traded Tuesday vs. its average 30-day volume of 34.25 million shares per day.

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Apple stock.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: AAPL

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