Apple Shares Drop on Weak Predictions for Second Quarter
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
SAN FRANCISCO — Apple Inc. yesterday provided weaker-than-expected guidance for its current fiscal quarter, sending shares plunging in late trading and adding to worries about a slowdown in consumer spending in America.
Apple said it now expects second quarter revenue of $6.8 billion on a profit of 94 cents a share, below the average analyst estimates of $1.09 a share on revenue of $6.98 billion.
The chief financial officer of Apple, Peter Oppenheimer, defended the company’s guidance, which would represent gains of 8% from year-ago earnings per share and 29% from year-ago revenue, according to Thomson Financial.
“We are giving very strong guidance,” Mr. Oppenheimer said in an interview. “We are very confident we will achieve it.”
Apple shares recently traded at $139.95, off 10% from its close yesterday. The company is losing about $13.74 billion in market cap after the bell. Apple shares, down 3.5% to $155.64 during the regular session, were trading slightly higher in late trading before the earnings release.
Apple’s guidance was being more closely scrutinized yesterday in light of the ongoing global stock sell-off sparked, in part, by fears of a American recession and a slowdown in consumer spending.
