apple Inc. (AAPL) announced its fiscal 2015 third quarter earnings report after market close yesterday. While the company beat expectations for revenue and earnings, iPhone sales were softer than expected, leading the stock to fall over 7% in after-hours trading.

The Cupertino based company reported quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the same quarter a year ago. Furthermore, revenue and EPS beat analyst expectations of $49.4 billion and $1.81, respectively.

Apple also reported iPhone sales of $47.5 million, up 35% annually; iPad sales of $10.9 million, down 18% annually; and Mac sales of $4.8 million. International sales accounted for 64% of the quarterly revenue.

Additionally, gross margin was 39.7% compared to 39.4% in the same quarter last year.

CEO Tim Cook commented on Apple's earnings, stating, “We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch.” He continued, “The excitement for Apple Music has been incredible, and we're looking forward to releasing iOS 9, OS X El Capitan and watch OS 2 to customers in the fall.”

The company also provided guidance for its fiscal 2015 fourth quarter in the report, expecting revenue between $49 billion and $51 billion, and gross margin between 38.5% and 39.5%.

Piper Jaffray analyst Gene Munster weighed in on Apple with bullish sentiments on July 21, reiterating a Buy rating with a $162 price target.

The analyst explains, “The reason shares are down 7% in the aftermarket is due to iPhone unit sales of $47.5 million compared to investor thinking for 49 million or more.” He continues, “We believe Jun-15 iPhone unit growth of 35% y/y vs 38% in Mar-15 (ex channel fill) is positive overall as it represents continued market share growth.”