Apple Inc AAPL CFO Luca Maestri said that the revenue performance of the iPhone maker is likely to take a hit during the December quarter.
What Happened: Maestri said during the company’s fourth-quarter earnings call, “We believe total company year-over-year revenue performance will decelerate during the December quarter as compared to the September quarter.”
The reasons listed for the deceleration by Maestri included a near 10 percentage points of negative year-over-year impact of foreign exchange.
Notably, the dollar has risen considerably against a slew of foreign currencies this year with the dollar index, a measure of strength against six other currencies, up nearly 15% on a year-to-date basis.
The CFO also mentioned a “challenging compare” on Mac with respect to the previous year when the computer lineup benefited from a redesigned MacBook Pro with M1.
Maestri said that in services, Apple expects the growth to be impacted by the macroeconomic environment’s impact on foreign exchange, digital advertising, and gaming.
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Why It Matters: During the fourth quarter, Apple’s earnings per share came in at $1.29 per share, which beat Street estimates of $1.27.
Revenue rose 8% year-over-year from $83.36 billion to $90.1 billion, beating analyst average estimates of $88.9 billion.
The Mac was one of the brightest spots for the Tim Cook-led company and saw double-digit growth of 25.4% year-over-year to $11.51 billion.
Price Action: Apple shares rose 0.3% in the after-hours trading to $145.28 after closing 3.05% lower at $144.80 in the regular session, according to data from Benzinga Pro.
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Image and article originally from www.benzinga.com. Read the original article here.