Wednesday, January 23, 2013

Apple's Revenue Falls Short, Shares Dive



             
Apple reported earnings that edged past Wall Street's estimates on Wednesday but its revenue fell slightly short of forecasts during the crucial holiday quarter.  CNBC reports that after the earnings announcement, the company's shares fell in extended-hours trading.

For the fiscal first quarter, it posted net income of $13.07 billion, or $13.81 a diluted share, compared to $13.06 billion, or $13.87 a share, a year earlier. This is the first time in years that Apple didn't post a double-digit earnings increase.  Revenue increased 18 percent to $54.51 billion from $46.33 billion a year ago.

"The revenue number is dismal as far as what the expectations were," said Jeff Sica president and chief investment officer of SICA Wealth Management. But he added that it's an "incredible number" on its own and Apple has "fallen victim to the curse of high expectations."

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