Last quarter, Apple's (NASDAQ:AAPL) earnings beat and cash givebacks weren't enough to overcome dour guidance. The stock closed the day down more than 20% year to date and underperforming the S&P 500 by nearly twice that.
But now Apple stock is rallying about 4% after-hours. Why? The Mac maker reported $7.47 a share in profits on $35.3 billion in revenue, soundly beating estimates. Analysts were expecting $7.32 a share and $35.01 billion, respectively, according to Yahoo! Finance.
Surprisingly strong iPhone sales offset weakness in the iPad, while Mac sales came in slightly below consensus. Here's a product-by-product look at Apple's fiscal Q3 versus the median projections compiled by Fortune:
For fiscal Q4, Apple expects between $34 billion and $37 billion in revenue. Wall Street had been modeling for $37.11 billion, according to Yahoo! Finance. The board also approved $3.05 per share in dividends, consistent with last quarter's payment.
Should investors be as excited as the after-hours action in Apple stock suggests? I'd say so. In setting a new record for fiscal Q3 iPhone sales, Apple (for now, at least) alleviates fears that existing iPhone owners would migrate to Android instead of wait for iOS 7. Do you see Apple's rally continuing into tomorrow? Are you planning to buy, sell, or short Apple stock?