Apple on Monday posted an EPS of $14.50 on revenue of $57.6 billion, thus beating the consensus estimate of $14.09 EPS on revenue of $57.46 billion. Apple had an incredibly busy fall that was highlighted by several major product launches including the iPhone 5s, the iPhone 5c, the iPad Air and the iPad mini Retina, all of which were hot sellers over the holiday quarter. For 2014 Apple is expected to launch a larger version of its iconic iPhone that will have a display of at least 4.5 inches as well as a larger version of its iPad that will be targeted toward the education market. The company’s gross margin on the quarter was 37.9%, which was largely in line with the consensus estimate of 37.5%.

Although Apple’s EPS and revenues exceeded expectations there was one area where they did not: iPhone sales. Apple sold 51 million iPhones on the quarter, significantly less than the 56 million consensus estimate.

iPad sales on the quarter were very robust, as Apple reported selling a record 26 million tablets in Q1 2014. Supplies of Apple’s top two tablets were somewhat sporadic on the quarter, however, as the iPad Air was widely available for holiday shoppers while the Retina-equipped iPad mini faced some severe supply constraints. The consensus estimate was that Apple would sell around 24 million iPads on the quarter.

Despite beating expectations in Q1, Apple’s stock value plummeted by more than 5% in after hours trading largely because the company’s guidance of $42 billion to $44 billion in revenues for Q2 2014 was below the consensus estimate of $46.05 billion.

The company’s press release follows below.

Apple Reports First Quarter Results iPhone and iPad Sales Drive Record Revenue and Operating Profit CUPERTINO, Calif.–(BUSINESS WIRE)– Apple today announced financial results for its fiscal 2014 first quarter ended December 28, 2013. The Company posted record quarterly revenue of $57.6 billion and quarterly net profit of $13.1 billion, or $14.50 per diluted share. These results compare to revenue of $54.5 billion and net profit of $13.1 billion, or $13.81 per diluted share, in the year-ago quarter. Gross margin was 37.9 percent compared to 38.6 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue. The Company sold 51 million iPhones, an all-time quarterly record, compared to 47.8 million in the year-ago quarter. Apple also sold 26 million iPads during the quarter, also an all-time quarterly record, compared to 22.9 million in the year-ago quarter. The Company sold 4.8 million Macs, compared to 4.1 million in the year-ago quarter. Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock. The dividend is payable on February 13, 2014, to shareholders of record as of the close of business on February 10, 2014. “We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.” “We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion,” said Peter Oppenheimer, Apple’s CFO. Apple is providing the following guidance for its fiscal 2014 second quarter: • revenue between $42 billion and $44 billion • gross margin between 37 percent and 38 percent • operating expenses between $4.3 billion and $4.4 billion • other income/(expense) of $200 million • tax rate of 26.2 percent Apple will provide live streaming of its Q1 2014 financial results conference call beginning at 2:00 p.m. PST on January 27, 2014 at www.apple.com/quicktime/qtv/earningsq114. This webcast will also be available for replay for approximately two weeks thereafter.