- By Julie Young

Apple (AAPL) reported its third-quarter 2016 earnings results Tuesday. Revenue and earnings beat analysts' average estimate, but sales continued to fall for the technology company in the third quarter.

For the quarter Apple reported revenue of $42.4 billion, beating analysts' average estimate by $310 million. Revenue for the quarter was down 14.5% from the comparable quarter. Earnings per share for the quarter were $1.42, beating analysts' average estimate by 4 cents. Earnings per share for the quarter were down 23% from the comparable quarter.

• Warning! GuruFocus has detected 3 Warning Sign with AAPL. Click here to check it out.

• AAPL 15-Year Financial Data

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The company's stock was up 6.5% the day after its earnings report. The price gain indicates that the quarter's results were better than investors expected. However, significant decreases in sales continue. For the quarter, iPhone sales revenue was down 23%, and Mac sales revenue was down 13%. Sales revenue from the iPad gained 7%, and sales revenue from services gained 19%.

Industry analysts are divided over Apple's future direction with both bullish and bearish outlooks after the company's third-quarter earnings report. In a CNBC report Wednesday, market specialists discussed a broad range of factors affecting the company's valuation.

Disclosure: I do not own any shares of Apple.

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This article first appeared on GuruFocus.

• Warning! GuruFocus has detected 3 Warning Sign with AAPL. Click here to check it out.

• AAPL 15-Year Financial Data

• The intrinsic value of AAPL

• Peter Lynch Chart of AAPL