Shares of Apple Inc. (NASDAQ:AAPL) jumped 10.3% in the month of August, according to data provided by S&P Global Market Intelligence, after the tech juggernaut announced strong fiscal third-quarter 2017 results.
More specifically, Apple’s quarterly revenue climbed 7% year over year to $45.4 billion, marking the third time in as many quarters that its top-line growth has accelerated. Apple’s profits fared even better, with gross margin expanding 50 basis points to 38.5%, and earnings per share rising 17.6% to $1.67. Both sales and gross margin arrived at the high ends of Apple’s latest respective guidance ranges.
For perspective, Apple enjoyed revenue growth in all segments: iPhone sales climbed 3% year over year to $24.846 billion; iPad revenue increased 2% to $4.969 billion; services revenue grew 22% to $7.266 billion; and sales of other products — including Apple TV, Apple Watch, Beats, iPod, and accessories — rose 23% to $2.735 billion.
What’s more, Apple provided guidance for fiscal fourth-quarter revenue to increase in the range of 4.5% to 10.9%, or to between $49 billion and $52 billion, the midpoint of which (7.7%) would mark its fourth straight acceleration in quarterly revenue growth.
“[W]e’re looking very much forward to the product rollouts,” added Apple CEO Tim Cook during the subsequent call — a reference to the impending introduction of new products later this month. These include the widely expected iPhone 8 smartphone, in time for the 10th anniversary of Apple’s most popular product line.
In the end, given Apple’s continued revenue acceleration, solid earnings growth, and new products coming down the pipe, it was no surprise to see Apple stock rally more than 10% last month to a fresh all-time high.