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Apple Beats 2Q17 Estimates on Robust Demand for iPhone 7 Plus

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Revenue in fiscal 2Q17

On May 2, 2017, technology (QQQ) heavyweight Apple (AAPL) announced its fiscal 2Q17 results. It reported revenue of $52.9 billion and quarterly net income of $11.0 billion. Its EPS (earnings per share) was $2.10. Revenue rose 5.0% YoY (year-over-year), driven by strong MacBook sales and an increase in its Services segment revenue.

In comparison, in fiscal 2Q16, Apple had revenue of $50.6 billion, net income of $10.5 billion, and EPS of $1.90.

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During Apple’s fiscal 2Q17 earnings call, CEO (chief executive officer) Tim Cook said, “We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus. We’ve seen great customer response to both models of the new iPhone 7 (PRODUCT)RED Special Edition and we’re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter.”

What analysts expected from Apple in fiscal 2Q17

Analysts expected Apple to post revenue of $52.9 billion for the quarter, which ended in March 2017, with a low estimate of $51.7 billion and a high estimate of $54.6 billion. They expected EPS to be $2.02, with a high estimate of $2.14 and a low estimate of $1.91.

Apple beat EPS estimates in fiscal 1Q17 by 4.7%, with EPS of $3.21. It also beat analysts’ EPS estimates in fiscal 4Q16 and fiscal 3Q16 by 0.60% and 2.9%, respectively. However, its EPS was 5.0% lower than analysts’ estimate in 2Q16.

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