Apple’s Earnings Top Estimates, but Sales Trail Expectations

Apple delivered a mixed bag in its quarterly earnings report, as per-share income came in just ahead of forecasts while iPhone sales and revenue were slightly less than some analysts had hoped for.

The Cupertino, Calif.-based technology giant reported earnings per share of $1.28 on revenue of $37.4 billion for the quarter that ended in June. Analysts expected Apple to report earnings of $1.23 a share on revenue of $38 billion.

Looking forward, Apple said to expect revenue of $37 billion to $40 billion for its July-to-September quarter. Analysts had been forecasting a revenue projection of around $40.4 billion, with per-share earnings pegged at $1.34. Apple didn’t give a per-share earnings forecast but did say to expect gross margins of 37 percent to 38 percent.

And, of course, the company offered its detail-free tease of upcoming products.

“We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce,” CEO Tim Cook said in a statement.

Apple also took pains to note that it is returning more of its gigantic cash flow to shareholders, something near and dear to investors.

Apple sold 35.2 million iPhones in the June quarter. Analysts forecast Apple would sell about 35 million to 36 million iPhones in its third quarter — which is down 18 percent from the prior quarter but consistent with sales in the months before an anticipated refresh of Apple’s product line.

It also sold 13.3 million iPads. Investors are watching tablet sales, which slumped 16 percent from the prior quarter. That’s also at the low end of Wall Street’s estimates.

Shares of Apple inched lower in after-hours trading following the earnings report, changing hands recently at $94.16, down 56 cents or just more than half of one percent.

Wall Street investors were awaiting results to gauge the strength of Apple’s stalwart iPhone, which accounts for more than half of the company’s revenue. Some analysts note, though, that investors typically look past this quarter’s numbers as they anticipate new product introductions in the fall.

The company will take (but not necessarily answer) all manner of analyst questions in a conference call starting at 2 pm PT.

This article originally appeared on Recode.net.