Apple Shares Drop On Weaker Q3 Guidance

Shares  of Apple are trading 1.8% lower in aftermarket trade after a mixed report which beat earnings targets, but fell short on earnings and sales guidance.

The company announced an adjusted EPS of $2.10 versus expectations of $2.02 per share.

However, the revenue number of $52.9 billion was less than the street’s expectation of $53.02. Further, revenue guidance for Q3 has been revised down from $45.6 billion to $43.5 billion.

In addition, gross margins for Q3 are also pointing lower to 37.5% from 38.5%.

Taking into account the 20% rally the stock has seen in calendar 2017 from $118.00 to $147.00, a pullback into the $138.00 handle is a reasonable target.