Earnings per share came in at an adjusted $3.03 for its fiscal year fourth quarter, beating estimates of $2.84 and rising 4% year-over-year. Revenue was $64.04 billion, beating estimates of $63.015 billion and rising 2% year over year.
Here's what jumped out the most and what to watch for as analysts come out with commentary and updated valuations:
Apple's wearables, which includes the the Apple Watch and Air Pods, saw revenue of $6.52 billion, beating estimates with an impressive year-over-year rise of 54%. Wearables have become an increasingly important part of Apple's business. And its Services business revenue came in at $12.5 billion, also beating expectations.
Services and wearables carry higher margins than iPhones do and as those grow, they should be a big lift to earnings. Investors want to see those two areas show strength, as investors begin to warm to Apple's long-term story of shifting towards services and away from dependance on the iPhone for growth.
Nonetheless, iPhone sales beat expectations and analysts were already upping their iPhone sales forecasts throughout the quarter.
Apple's gross margin guide for the current quarter of roughly 38% was also higher than analysts expectation of 37.5%.
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