Shares of technology giant Apple (NASDAQ:AAPL) jumped as much as 5.1% on Wednesday, following the company's fiscal second-quarter earnings release. The stock is trading 5% higher at the time of this writing.
Bullishness toward Apple stock on Wednesday reflects the company's better-than-expected revenue, earnings per share, and guidance. In addition, a handful of upbeat analyst reports have been published since the earnings release, likely playing a role in some of the investor optimism for Apple on Wednesday.
For Apple's fiscal second quarter, revenue and earnings per share increased 16% and 30% year over year to $61.1 billion and $2.73, respectively. These were ahead of consensus analyst estimates for revenue and earnings per share of $61 billion and $2.69.
The iPhone X continued to sell well, outselling every iPhone model each week since the phone's launch. In addition, Apple's services and other products segments helped propel revenue higher. Services revenue increased 31% year over year, and other products revenue increased 38% during the same period. Together, these segments accounted for a meaningful 21% of revenue.
Analysts seemed pleased with the report. RBC Capital Market analyst Amit Daryanani said the report proves skeptics wrong. Morgan Stanley analyst Katy Huberty admitted that Apple's third-quarter guidance implies that the meaningful downside she expected from iPhone in Apple's third quarter "didn't come to fruition."
Looking ahead, Apple expects its strong year-over-year growth to persist. Management guided for fiscal third-quarter revenue to be between $51.5 billion and $53.5 billion. The midpoint of this guidance range implies 16% year-over-year revenue growth for the period.
Apple CEO Tim Cook was very optimistic about the company's business during the second-quarter earnings call:
We're now halfway through our fiscal 2018 with nearly $150 billion in revenues and double-digit growth in all of our geographic segments. We've generated almost $34 billion in earnings in six months, and we're very bullish on Apple's future. We have the best pipeline of products and services we've ever had.
Daniel Sparks owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.