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What: Shares of Apple (NASDAQ:AAPL) have gotten hammered today, down by as much as 12% after the company reported worse-than-expected earnings driven by light iPhone sales.
So what: The company reported record results in revenue of $54.5 billion and net income of $13.1 billion, or $13.81 per share. iPhone units were less than analysts were expecting, amounting to 47.8 million, although iPad units were in line with forecasts at 22.9 million.
Now what: Investors are also concerned about the company's guidance, which calls for revenue in the current quarter of $41 billion to $43 billion, while the Street was expecting $45 billion. CFO Peter Oppenheimer's comments were interpreted as meaning Apple would be more realistic with its guidance, a shift from its previously conservative outlooks. Mac units were also weak due to significant supply constraints on the new iMacs.
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Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.