Apple Smashes Expectations, Earnings Soar

Apple's third quarter earnings reported after the bell Tuesday sailed past estimates. Apple's revenue in its fiscal third quarter, ending in June, rose 82 percent over the same period a year ago, to $28.6 billion, yielding $7.79 in earnings per share.

Apple's stock soared in after-hours trading Tuesday in response, up almost 6 percent. Apple's shares climbed after its earnings report was released $23 per share to $376.29.

Analysts were expecting on average for Apple to earn $25 billion in revenue, or $5.85 per share.

Apple's strong iPhone sales were a primary reason for the company's strong performance. Apple sold 20.3 million iPhone units in the quarter, and 9.52 million iPads. Apple sold 3.95 million Macs and 7.54 million iPods.

Analysts had expected Apple to sell roughly 16 to 18 million iPhones, so the number was well ahead of forecasts. Analysts expected 8 million iPads to be sold, and 4.2 million Macs and 8 million iPods.

We're thrilled to deliver our best quarter ever, said Apple CEO Steve Jobs, with revenue up 82 percent and profits up 125 percent. Right now, we're very focused and excited about bringing iOS 5 and iCloud to our users this fall.

It was the 9th straight quarter that Apple's reported quarterly revenue beat analyst expectations.