Apple Inc AAPL CFO Luca Maestri said that the revenue performance of the iPhone maker is likely to take a hit during the December quarter.
What Happened: Maestri said during the company’s fourth-quarter earnings call, “We believe total company year-over-year revenue performance will decelerate during the December quarter as compared to the September quarter.”
The reasons listed for the deceleration by Maestri included a near 10 percentage points of negative year-over-year impact of foreign exchange.
Notably, the dollar has risen considerably against a slew of foreign currencies this year with the dollar index, a measure of strength against six other currencies, up nearly 15% on a year-to-date basis.
The CFO also mentioned a “challenging compare” on Mac with respect to the previous year when the computer lineup benefited from a redesigned MacBook Pro with M1.
Maestri said that in services, Apple expects the growth to be impacted by the macroeconomic environment’s impact on foreign exchange, digital advertising, and gaming.
See Also: How To Buy Apple (AAPL) Shares
Why It Matters: During the fourth quarter, Apple’s earnings per share came in at $1.29 per share, which beat Street estimates of $1.27.
Revenue rose 8% year-over-year from $83.36 billion to $90.1 billion, beating analyst average estimates of $88.9 billion.
The Mac was one of the brightest spots for the Tim Cook-led company and saw double-digit growth of 25.4% year-over-year to $11.51 billion.
Price Action: Apple shares rose 0.3% in the after-hours trading to $145.28 after closing 3.05% lower at $144.80 in the regular session, according to data from Benzinga Pro.
Image and article originally from www.benzinga.com. Read the original article here.