Apple announced its earnings for Q1 of fiscal 2014 revealing record revenue, but the company's shares slid as it reported less than expected iPhone sales as well as a weak future outlook.
On Monday, Jan. 27, Apple posted its financial results for the quarter ended Dec. 28, 2013. The company reported revenue of $57.6 billion in Q1 of fiscal 2014, an increase of 5.7 percent, when compared to the revenue of $54.5 billion in Q1 of fiscal 2013.
The net income of $13.1 billion remained flat during the quarter, when compared to Q1 of fiscal 2013. Earnings per share increased 5 percent to $14.50 from $13.81.
"We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion," said Apple CFO Peter Oppenheimer.
Apple launched and released its latest iPhone 5s and the iPhone 5c in September 2013 and sold over 51 million iPhones in Q1 of fiscal 2014. However, analysts had made a higher sales forecast of 55 million units during the quarter.
The Company sold over 4.8 million Macs, when compared to 4.1 million in the same quarter in 2012. Apple also sold a record 26 million iPads in Q1 of fiscal 2014, compared to 22.6 million units in Q1 of fiscal 2013.
Apple launched the latest iPad Air and the second-generation Retina iPad mini during the quarter and analysts had predicted iPad sales to reach 24.6 million.
"We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services," Apple's CEO Tim Cook said in a statement. "We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better."
Apple also revealed a weaker outlook for Q2 of fiscal 2014. The company expects sales of $42 billion to $44 billion this quarter, whereas Wall Street analysts predicted the company would announce a sales forecast of $46 billion during the quarter.
The Cupertino-based company has also entered into a deal with China Mobile and is expected to generate extra revenue in the current quarter.
Apple's share price fell by around 8 percent and slid to less than $507 in the after hours trading following the earnings call. On Tuesday, shares further slipped, closing down 7.99 percent at $506.50 on the Nasdaq.