Updated from 5:06 p.m. EDTApple ( AAPL) blew past targets but aimed its fiscal third-quarter goals below analysts estimates. The Cupertino, Calif.-based gadget shop posted earnings of $1.33 a share, up from $1.16 a share in the year ago period and well above the $1.09 profit analysts had anticipated, according to Yahoo! Finance. Sales for the quarter ended March 28 were $8.16 billion, up from $7.5 billion a year ago and above the $7.94 billion in revenue analysts were looking for. Apple did see it first decline in Mac sales in five years with 2.2 million computers sold, in line with expectations. The company sold 3.79 million iPhones in the quarter, better than the 3.4 million analysts expected. And Apple's premium priced devices translated to a wider than expected gross margin of 36.4%, much fatter than the 32.5% expected. "We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history," CFO Peter Oppenheimer said in a press release. Apple says it now expects profit of between 95 cents and $1 a share on revenue between $7.7 billion and $7.9 billion for its fiscal third quarter. That forecast is well below analysts' expectations for a profit of $1.11 on $8.26 billion in revenue. But Apple watchers point out that the company is characteristically conservative in its guidance. Analysts had worried about how Apple would fare in a down market against cheaper competition. Mac sales were down 11% sequentially and 2% below the year-ago period.