The Dow Jones Industrial Average rose over 300 points on positive earnings from tech giant Apple and aircraft manufacturer Boeing.
At the close of Tuesday’s session, Apple bested analyst expectations in earnings and revenue for its fiscal first quarter, muting previous warnings by CEO Tim Cook that results would disappoint due to lackluster iPhone sales.
Shares of Apple rose 4 percent in after hours trading following its earnings results on Tuesday. On Wednesday, Apple climbed 4.7 percent higher.
Apple Earnings Results Versus Expectations:
- EPS: $4.18 versus $4.17 expected per Refinitiv consensus estimates
- Revenue: $84.3 billion versus $83.97 billion expected per Refinitiv consensus estimates
- iPhone revenue: $51.98 versus $52.67 billion expected per Refinitiv consensus estimates
- Services revenue: $10.9 versus $10.87 billion expected per Refinitiv consensus estimates
It’s been a month since shares of Apple were battered as a result of weaker guidance as the tech giant projected lower revenue due to weaker demand for its iPhone. Analyst downgrades hurt the stock as most pointed to less-than-stellar iPhone sales as a weak link for 2019.
That number was reflected in the final first-quarter earnings results as the iPhone maker beat expectations in earnings per share, revenue and services revenue, but as expected, fell short on iPhone revenue.
“Our customers are holding on to their older iPhones a bit longer than in the past. When you paired this with the macroeconomic factors particularly in emerging markets, it resulted in iPhone revenue that was down 15 percent from last year,” said CEO Tim Cook during the company’s earnings call.