In an after trading hours earning report, Apple said that its sales and profit had exceeded analysts' estimates, but as a whole the company made less money than it had the previous quarter. After the announcement, shares fell more that 2.7 percent. Despite this, Apple stock remains strong, hovering around $530 a share, and is up more than 25 percent since the company's last earning report that was released in July.
"Guidance was disappointing as better revenues were not enough to offset gross margin pressure," Peter Misek of Jefferies & Co. wrote in a note to clients, as reported by MarketWatch. "We think gross margin pressure is short-term/one-time in nature and would use stock price weakness as a buying opportunity."
Apple's report also includes projections about sales during the lucrative holiday shopping season. The company expects revenue to be in the range of $5 billion to $58 billion, which is very close to Wall Street's estimate of $55.5 billion.
During the quarter ending on September 28, Apple said that it sold 33.8 million iPhones and 14.1 million iPads. The company has also positioned itself for an aggressive end-of-year season. In addition to the two new iPhones that debuted in September, it will release the iPad Air and the iPad Mini with Retina display in November. Its revamped line of Mac laptops also went on sale last week.
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