Apple reported fourth-quarter earnings that beat analyst expectations on Wednesday, thanks to strong performance in services and its fast-growing wearables business. Although Apple's iPhone's business was down 9% year-over-year, the company signaled that it expected a big holiday quarter, and Apple stock rose over 1% in after-hours trading Here's how the company did compared with Refinitiv consensus estimates: Revenue : $64 billion vs. $62.99 billion estimate.

: $64 billion vs. $62.99 billion estimate. EPS : $3.03 vs. $2.84 estimate.

: $3.03 vs. $2.84 estimate. Q1 revenue guidance : $85.5 billion to $89.5 billion vs. $86.92 billion estimate.

: $85.5 billion to $89.5 billion vs. $86.92 billion estimate. iPhone revenue : $33.36 billion vs. $32.42 billion estimate.

: $33.36 billion vs. $32.42 billion estimate. Services revenue: $12.51 billion vs. $12.15 billion estimate. Investors were watching Apple's guidance for its important holiday quarter, which was in line with analyst estimates. Apple is signaling that it expects growth over last year's holiday quarter, where it was hit by a major downturn of iPhone sales in China. It also suggests that Apple has a chance to beat the record $88.3 billion in revenue it posted in the quarter ending December 2017.

Apple CEO Tim Cook highlighted the strong holiday forecast in a statement. "We're very optimistic about what the holiday quarter has in store," Cook said. He also signaled an optimistic note on the U.S.—China trade war that has affected Apple stock. "The tone around tariffs has changed significantly," Cook said during an earnings call.

iPhone down, but nearly everything else up

However, it wasn't all good news for Apple. iPhone sales were down 9% year-over-year, which Cook said was a major "improvement" over previous quarters which saw iPhone revenue drop as much as 15%. However, Apple's company's total revenue was up, partially due to 18% growth in Apple's services business, which includes AppleCare warranties and subscriptions like iCloud. Apple said that Apple's subscription business, which includes subscription apps, grew 40% year-over-year, and it said that there are 450 million paid subscriptions on Apple's platform.