Apple, the company with the largest market capitalization, and Amazon, the world's largest e-commerce company, both recorded earnings surprises that exceeded expectations on the 3rd (local time). However, their stock price movements in after-hours trading are mixed.
Apple announced after the New York Stock Exchange closed that its earnings per share for the second quarter (third quarter of the fiscal year) were $1.26. This far exceeds the Refinitiv consensus estimate of $1.19. Quarterly revenue was $81.8 billion, down 1% year-over-year, but still above Wall Street expectations.
This performance is attributed to strong sales in the services segment. Specifically, iPhone sales were $39.67 billion, down 2% year-over-year, and Mac sales were $6.84 billion, down 7%. Revenue from the services segment increased by more than 8% compared to a year ago, reaching $21.21 billion. Apple does not officially provide earnings guidance.
Despite the better-than-expected results, Apple’s stock price is trading nearly 1% lower in after-hours trading. Apple’s stock also closed down 0.73% during regular trading hours.
On the same day, Amazon reported second-quarter revenue that increased 11% year-over-year. Amazon’s Q2 revenue was $134.4 billion, with earnings per share of $0.65. These figures also exceeded Wall Street estimates ($131.45 billion revenue, $0.35 EPS). Amazon Web Services, the cloud computing division, posted $22.1 billion in revenue. The advertising segment also generated $10.7 billion, surpassing market expectations.
Notably, Amazon provided a third-quarter earnings outlook that exceeded initial expectations. The revenue forecast for Q3 is between $138 billion and $143 billion. Amazon’s stock price is currently trading more than 7% higher in after-hours trading. Amazon closed up 0.55% during regular trading hours.
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