Apple Stock Drops as Quarter Disappoints Investors

2:10 PM PDT 7/24/2012 by Paul Bond

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Even while the company sold a whopping 17 million iPads in three months, its earnings and revenue were light, sending the stock down 6 percent after the closing bell.

Apple was shy of quarterly earnings expectations, a rare miss for a company that has been firing on all cylinders for several years, and investors were punishing the lackluster performance by selling shares after the closing bell on Tuesday.

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Apple reported that it earned $8.8 billion in its fiscal fourth quarter, or $9.32 per share. While that's up from $7.3 billion and $7.79 per share a year ago, it was short of the $10.37 per share that analysts were expecting.

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Revenue rose 23 percent to $35 billion, which was short of the $37.5 billion expected by analysts.

While it bested expectations by selling 17 million iPads, it was at the low end of estimates by selling 26 million iPhones. Chief Financial Officer Peter Oppenheimer said iPhone sales "continue to be impacted by rumors and speculation about new product."

Apple shares fell fractionally on Tuesday to $600.92 though after the closing bell the stock was off as much as 6 percent more.

The company on Tuesday also declared a cash dividend of $2.54 per share that will be paid to sharehoders of record on Aug. 13.