While Apple turned in stellar financial results for the March quarter that were well ahead of analyst predictions, the after hours market focused on the companyis guidance for the third quarter, which came in below consensus estimates, and sent the stock trading lower.
Apple offered guidance of US$1 per share in profits for Q3, which was short the $1.09 Wall Street is looking for. The company also forecast revenue of $7.2 billion, which was also lower than the consensus estimates of $7.22 billion.
Shares in AAPL are currently trading at $161.81 per share, down $1.08, in the extended session, and spent most of the after hours session trading between $4 and $7 per share lower.
Guidance often trumps current quarter results for traders, especially for a company like Apple where much of its stock market valuation is based on future results. So, while the company crushed Q2 estimates, Wall Street may well be asking what Apple will do for them next week, next month, or next quarter.
During the regular trading session, shares in AAPL closed at $162.89, up $2.69 (+1.68%). Read our full coverage of the quarterly results for more information on the companyis Q2 results.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article. ?