NEW YORK (TheStreet) -- Apple (AAPL) reported fourth-quarter earnings after the close, and all eyes were on guidance, as the tech giant gets set for the holiday season.
Cupertino, Calif.-based Apple reported net income of $8.26 per share on $37.5 billion in revenue as iPhone sales topped 33.8 million during the quarter compared to 26.9 million in the same period a year earlier. The company also sold 14.1 million iPads and 4.6 million Macs during the quarter. Gross margin for the quarter was 37%. Analysts surveyed by Thomson
Reuters are looking for Apple to earn $7.96 a share on $36.93 billion in revenue for the fourth quarter.
Gross margin guidance for the the fiscal first-quarter was a concern, but Apple did its best to alleviate those concerns on the conference call. CFO Peter Oppenehimer said the gross margin guidance, which is between 36.5% and 37.5%, would be higher if it were not for $900 million in deferred revenue for the quarter, due largely to Apple now giving away software, including Mac OS X Maverick, iLife, iPhoto and iWork.
For the holiday shopping season, Apple expects to generate between $55 and $58 billion in revenue, with gross margins between 36.5% and 37.5%. It expects operating expenses to be between $4.4 and $4.5 billion. Analysts surveyed by Thomson Reuters are looking for Apple to generate $13.81 a share in earnings on $55.7 billion in revenue for its fiscal first quarter.