Apple ticks up as Q3 results top expectations

Apple (NASDAQ:AAPL) shares rose slightly in extended trading on Thursday after the iPhone maker reported fiscal third-quarter results that topped expectations.

For the period ending June 29, Apple earned $1.40 per share as revenue rose 5% year-over-year to come in at $85.78B. Included in that sales figure was $39.3B from the iPhone.

Analysts had expected the company to earn $1.34 per share on $84.4B.

Overall revenue from products came in at $61.56B, slightly above expectations of $60.63B.

Seeing strength during the period were the company’s iPad and Mac businesses, as both groups rose year-over-year by 24% and 2.5% to $7.16B and $7B, respectively. Analysts had expected $6.63B and $6.98B, respectively.

Also topping analyst’s forecasts was Apple’s Services business, which rose 14% from the year-ago period and accounted for $24.21B in revenue during the period, above the $23.96B forecasted.

Apple’s Wearables business generated $8.1B in revenue, down 2.3% year-over-year, but above analyst estimates of $7.79B.

Revenue from Greater China fell 6.5% year-over-year during the period to come in at $14.73B, below the $15.26B that analysts had expected.

In a statement, CEO Tim Cook said the company is very much looking forward to sharing its artificial intelligence tools announced at its developers conference with users.

“We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work,” Cook said.

Seeking Alpha Investing Group Leader Ahan Vashi said the return to top-line growth should “help allay growing investor concerns about the current state of the consumer, both at home and abroad (especially in China).”

Apple will hold a conference call at 5 p.m. EST to discuss the results.