Apple Profit Up, Outlook Strong, Shares Up 3%

(RTTNews) - Apple Inc. (AAPL) Thursday reported an increase in profit for the fourth quarter, as revenues grew for the fourth straight quarter driven largely by strong iPhone sales.

Apple forecast revenues for the holiday season quarter above market expectations, sending shares up over 3 percent in extended hours, as it cleared the rumored doubts about production delays and supply constraints for the flagship iPhone X, which starts shipping from November 3.

Apple sold 46.68 million iPhone units during quarter, generating $28.85 billion in revenues, up from 45.51 million units last year.

Apple's bottom line continues to be buoyed by iPhone sales, as it contributes about two-thirds of Apple's revenues and a major part of its profit.

"We're happy to report a very strong finish to a great fiscal 2017, with record fourth quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for Services," said Tim Cook, Apple's CEO.

Although, the fourth quarter results represent some iPhone 8 and 8 Plus sales, the holiday quarter would be crucial for Apple as the tech giant expects its flagship iPhone X to generate huge demand.

Apple reported fourth-quarter profit of $10.71 billion or $2.07 per share compared with $9.01 billion or $1.67 per share last year. Analysts had expected the company to earn $1.87 per share, according to figures compiled by Thomson Reuters.

Apple said its revenues rose to $52.58 billion from last year's $46.85 billion. Analysts had predicted revenues of $50.79 billion.

Looking forward to the first quarter, Apple expects revenue between $84 billion and $87 billion. Analysts currently project revenues of $85.31 billion.

The company also declared a cash dividend of $0.63 per share, payable on November 16 to shareholders of record as of November 13.

AAPL closed Thursday's trading at $168.11, up $1.22 or 0.73% on the Nasdaq. The stock further gained $5.84 or 3.45% in the after-hours trade.