Apple's shares rose in recent trading
At a glance: Apple shares rose in after-hours trading on Thursday, following the release of the company's fiscal first-quarter results.
Details: The iPhone maker reported stronger-than-expected sales and earnings for the latest quarter.
Although Apple reported a year-over-year decline in iPhone and wearables sales, it announced a positive outlook for the current quarter.
How were the results: The Cupertino, California-based company reported single-digit revenue growth for its fiscal first quarter ended Dec. 30.
Revenue grew 4% year-over-year to $124.30 billion, beating analysts' estimates of $124.13 billion.
Adjusted earnings came in at $2.40 per share, beating Wall Street's expectations of $2.36 per share.
Why it matters: Apple's latest results marked the eighth consecutive quarter of beating estimates for
both total revenue and revenue after expenses.
Will Apple return to profitability amidst the challenges?
Details
Product revenue rose to $97.96 billion in the latest quarter, from $96.46 billion in the same period last year, while services revenue rose to $26.34 billion, from $23.12 billion.
On the other hand, Apple's iPhone sales shrank to $69.14 billion, from $69.7 billion in the year-ago quarter. The wearables segment, which includes the Apple Watch and AirPods, reported sales of $11.75 billion, beating estimates of $12.01 billion.
Mac sales rose to $8.99 billion, from $7.78 billion, driven by a new lineup of iMacs, Mac Minis and MacBook Pros with the M4 chip. iPad sales, at $8.09 billion, exceeded expectations of $7.32 billion.
Sales in Greater China, one of the company's largest markets, fell to $18.51 billion, from $20.82 billion in the year-ago quarter. Apple faces stiff competition from local brands in the region.
Apple's return to profitability amid challenges
The total number of Apple devices currently in use has risen to a new record across all products and geographic segments.
CEO Tim Cook said that Apple Intelligence will be available "in more languages in April."
The company's board of directors declared a quarterly cash dividend of 25 cents per share. Management projected sales growth in the low-to-mid single-digit range for the current quarter.
How stocks responded: Apple's shares rose 3% to $244.79 in extended trading on Thursday, following the release of the quarterly results. The stock is up about 26% over the past year.
What to watch: Investors will continue to monitor the integration of AI features into Apple's devices, which could support its overall results going forward.