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Apple Earnings, Revenues Beat Street, Outlook Strong; Shares Up 5%

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Shares of Apple Inc. (AAPL) gained 5 percent on extended trading session Tuesday after the iPhone maker reported a second-quarter profit and revenues that trumped Wall Street estimates. Apple also issued a strong revenue outlook for the current quarter.

Apple's second-quarter profit dropped to $11.56 billion or $2.46 per share from $13.82 billion or $2.73 per share last year. On average, 32 analysts polled by Thomson Reuters expected earnings of $2.36 per share for the quarter.

Apple's revenues dropped 5 percent to $58.02 billion from last year's $61.14 billion. Analysts had a consensus revenues prediction of $57.37 billion.

Apple's revenues from iPhones dropped to $31.05 billion from $37.56 billion last year. However, iPhone revenues were above analysts' estimates of $30.5 billion.

"Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record," said Tim Cook, Apple's CEO.

Cook also said Apple delivered its strongest iPad growth in six years.

Looking forward to the third quarter, Apple expects revenues between $52.5 billion and $54.5 billion. Analysts currently project revenues of $51.93 billion.

Apple also declared a cash dividend of $0.77 per share, an increase of 5 percent, payable on May 16 to shareholders of record on May 13.

AAPL closed Tuesday's trading at $200.67, down $3.94 or 1.93% on the Nasdaq. The stock, however, gained $10.68 or 5.32%, in the after-hours trade.

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