Doom and gloom? Well, it looks like the nay-sayers were wrong. Apple’s doing very well and not circling the drain as the apocalyptic hedge-fund managers would have had you believe. They’ve been smart with the emerging markets, have seen growth and healthy sales and margins. What were you expecting, really? Bottom line, Apple is up and it believes it’s actually undervalued (they’re probably right!)

Here’s the rundown: Revenue was $45.6 billion, much stronger than the Street’s expectations for $43.6 billion. Keep in mind this revenue number represented year over year growth of only 4% (more on this later). Earnings per share was $11.62, up a much stronger 15% year over year. The earnings strength was driven by a better than expected gross margin of 39.3% compared to 37.7% estimates by analysts. iPhone sales were the star of the quarter. Apple sold 43.7 million of them, up 17% year over year. This was a huge beat compared to the 37.7 million units analysts expected them to sell. But iPad sales were disappointing at 16.35 million, down 16% year over year but not down nearly as much once you listen to Tim Cook’s explanation regarding the iPad Mini effecting it’s larger siblings sales.

At the end of all of this is a 7:1 stock split and plans for some back-buying per Tim Cook. I would see this as a sign of strength.

Apple Q2 2014: Wow, were we wrong! | iMore.