Apple (AAPL) shares reversed an initial decline after the release of its December quarter numbers on Thursday after the close, rising more than 3% to $173.42 after hours.
Revenue of $88.29 billion beat an $87.5 billion consensus, while EPS of $3.89 beat a $3.85 consensus. For the March quarter, Apple guided at $60 billion to $62 billion, below a $65.4 billion consensus.
In terms of unit sales, Apple sold 77.3 million iPhones (-1% year over year), 13.2 million iPads (+1%) and 5.1 million Macs (-5%). Meanwhile, services revenue increased 18% year over year to $8.47 billion, and Other Products sales grew 36% to $5.49 billion.
Here are some of the top takeaways from Apple's earnings report.
- iPhone ASP was $796, $40 above consensus and up $102 from a year ago. That suggests a healthy amount of iPhone X sales.
- In the wake of tax reform, Apple is guiding for a 15% March quarter tax rate. Three months ago, it guided for a 25.5% December quarter rate.
- Repurchases of common stock totaled $10.1 billion during the quarter. Ahead of the repatriation of $207 billion in offshore cash, Apple ended last quarter with $286 billion in cash and $122 billion in debt.
- Looking at geographic regions, Japan accelerated sharply relative to the September quarter, going from an 11% sales decline to 26% growth. Looks like the iPhone X was popular there.
- The rest of Asia-Pacific growth improved to 17% from 5%. Americas and Europe growth slowed to 10%, while Greater China growth fell just slightly to 11%.
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