Apple Inc (NASDAQ:AAPL, ETR:APC) shares slipped afterhours as its fiscal fourth quarter profit took a hit from a one-time charge related to a tax decision in Europe.
The iPhone maker said it paid a one-time charge of $10.2 billion to resolve a long-running tax case in Ireland.
Adjusted earnings per share (EPS), which excluded the one-time charge, were $1.64, up 12% year-over-year and ahead of estimates of $1.69.
Not adjusted, EPS was $0.97, down from $1.47 for the same period last year.
Revenue was up 6% from the year-ago quarter at $94.93 billion for Q4, above the $94.58 billion expected.
Strong iPhone sales following the launch of the iPhone 16 lineup in September offset misses in other categories, notably Services.
Services revenue grew to $24.97 billion from $22.31 billion, however, this was short of the $25.28 billion consensus estimate.
iPhone sales were $46.22 billion, up from $43.81 billion a year ago and ahead of the $45.47 billion expected by analysts.
“During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection,” Apple CEO Tim Cook said in a statement.
The company did not provide guidance for the December quarter, but Cook noted that the company expects the rollout of Apple’s AI offering Apple Intelligence to “supercharge” its lineup in the holiday period.
Luca Maestri, Apple’s CFO, added that the company returned more than $29 billion to shareholders during Q4.
“We are very pleased that our active installed base of devices reached a new all-time high across all products and all geographic segments, thanks to our high levels of customer satisfaction and loyalty,” Maestri said.
Shares of Apple traded 1.2% lower at about $223 post-earnings.