Apple Q1 Profit, Revenues Drop - Update

(RTTNews) - Apple Inc. (AAPL) Tuesday reported a profit and revenues for the first quarter that dropped from last year, hurt largely by weak sales of iPhones. The iPhone maker issued a weak revenue outlook for the current quarter.

Apple's first-quarter profit dropped to $19.97 billion or $4.18 per share from $20.07 billion or $3.89 per share last year. On average, 33 analysts polled by Thomson Reuters expected earnings of $4.17 per share for the quarter.

Apple's revenues dropped to $84.31 billion from last year's $88.29 billion. Analysts had a consensus revenues prediction of $84.00 billion.

Apple's revenues from iPhones dropped 15% to $51.98 billion from $61.10 billion last year.

"While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter's results demonstrate that the underlying strength of our business runs deep and wide," said CEO Tim Cook. "Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments."

Revenues from all other products and services grew 19% percent, with services revenue reaching an all-time high of $10.9 billion, up 19%. Revenues from Mac and Wearables, Home and Accessories also reached all-time highs, growing 9% and 33%, respectively, and revenue from iPad grew 17%.

Looking forward to the second quarter, Apple expects revenues between $55 billion and $59 billion. Analysts currently project revenues of $58.99 billion.

Apple also declared a cash dividend of $0.73 per share, payable on February 14 to shareholders of record on February 11.

AAPL closed Tuesday's trading at $154.68, down $1.62 or 1.04% on the Nasdaq. The stock, however, gained $4.11 or 2.66% in the after-hours trade.