Apple posted better than expected earnings and revenue for its fourth-quarter on Monday.
The tech giant posted $8.26 a share on $37.5 billion in revenue. The street estimated the company would post $7.96 a share on revenue of $36.93 billion. But investors were disappointed with guidance for gross margins.
During the current quarter, the company expects gross margins of 36.5 percent to 37.5 percent, which missed forecasts of 37.9 percent.
Shares fell more than two percent during after-hours trading, but then rose into positive territory during the company's earnings conference call. (Click here for the latest quote )
(Read more: Apple shares fall as margin outlook disappoints )
The company, which released its iPhone 5S and iPhone 5C in September, sold a total of 33.8 million iPhones, 14.1 million iPads and 4.6 million Macs during the quarter.
Analysts had expected Apple to sell 33 million to 35 million iPhone units.
The company said it sees first quarter revenue of $55 billion to $58 billion. Analysts had expected guidance of $55.7 billion.
We'll be listening in on the company's earnings conference call at 5:00 p.m. ET. Check back here for live updates.
6:01 p.m.: Call is over.
6:00 p.m.: Cook talking about carriers, he says carriers have come up with different sales programs to ones who want to upgrade their phone annually, and those programs likely reduce the subsidies somewhat.
He says we have a great relationships with carriers and believes they were very happy with the iPhone 5S and iPhone 5C roll out.
5:56 p.m.: Cook says versus last year, one key difference between Mac sales is that they shipped later last year than they will this year.
Cook also says that when the iPad Air launches this weekend, he expects demand to be high. He says "It may be not everyone can find one that wants one."
5:50 p.m.: "iPhone 5S ended quarter with a very significant backlog, we still have a significant backlog," Cook says.
5:48 p.m.: Cook is talking about all the free software upgrades Apple is now offering.
"Just another reason that everyone should buy a Mac," Cook says.
5:46 p.m.: "I think it's going to be an iPad Christmas," Cook says.
5:46 p.m.: Cook talking about tablet market, "We see it as a large opportunity to us."
Cook says announcement last week of new iPad line was largest iPad announcement ever. He stresses that big market share is not the end game though, says Apple is focused on creating the best product and customer loyalty.
5:43 p.m.: "We will endeavor to get down cost curves as we have in the past."
5:41 p.m.: Apple says working really hard to get down cost curves of products...
5:38 p.m.: Cook says Apple is investing in more stores in China, continuing to go out to more cities, not just large cities.
5:37 p.m.: Cook: "We had a good quarter in China, we obviously want to do better."
5:36 p.m.: Cook talking about iPhones again, says iPhone 4S is entry iPhone offer, gives someone ability to enter the ecosystem with a fantastic product.
5:33 p.m.: Cook says exciting new products from Apple across 2014...as for new product categories, he's not giving many details. Cook says company can tap Apple's ecosystem to build other great products in spaces the company is not currently in. Doesn't give any more details about timing.
"In terms of new product categories, if you look what Apple has in hardware, software and services -- I think no one else has a set of skills on this. We believe we can use our skills at building other great categories that are in areas where we do not participate today. We are pretty confident about that," he said.
5:32 p.m.: Now Cook is being asked about new product categories...
5:31 p.m.: Apple stock still down more than 2 percent in after-hours trading.
5:30 p.m.: Cook: iPhone 5C is not the entry iPhone, the entry iPhone is the iPhone 4S.
5:28 p.m.: Cook answers question about new technologies. He says the 64-bit smartphone and fingerprint sensor are innovations that helped lead the company to best iPhone launch ever.
5:26 p.m.: Analysts are ready to ask some questions. Katy Huberty from Morgan Stanley kicks it off and asks about margins.
On gross margin, Oppenheimer says "We're pleased to be guiding flat given all the new products we're announcing -- but higher deferred revenue offsets."
5:25 p.m.: Now the call is open for questions.
5:25 p.m.: So over 70 percent of Apple's cash is overseas...
5:23 p.m.: "We have returned to shareholders all new net domestic cash generated since beginning of the return program."
5:22 p.m.: Apple has 35.5 billion in cash in U.S and $111 billion plus in cash overseas.
5:20 p.m.: Interesting, Oppenheimer is now talking about retail stores, says they plan on remodeling a number of them. Bet Angela Ahrendts will have her hands full.
5:19 p.m.: Oppenheimer says iTunes Radio now has 20 million users and growing.
5:17 p.m.: "We continue to be very pleased with iTunes services," Oppenheimer said.
Cumulative app downloads has reached 60 billion, that's a lot of apps.
5:15 p.m.: He's moving on to Macs, says numbers show that Macs are growing market share. Says company is pleased with MacBook Air growth.
5:15 p.m.: He's citing different school districts in U.S. that are deploying iPads in schools.
5:13 p.m.: Companies around the world are adopting iPad to change legacy practices, Oppenheimer says. He cites some examples of such companies. Really stressing how the iPad is transforming different industries.
5:12 p.m.: Oppenheimer says interest in iPad remains "incredibly strong."
5:11 p.m.: He is talking about success of iPhone, says Apple users spend more time on phones than Android users.
5:09 p.m.: He says sales are up sharply in countries around the world, including Latin America, Russia, India and U.S.
5:08 p.m.: Cook is thanking employees and handing call over to CFO Peter Oppenheimer.
5:08 p.m.: Cook says they are investing in R&D and innovation and expanding into new locations.
5:06 p.m.: Cook talking about reallocating capital. Says that they will handle matters as they have in the past where board and management team will review issues.
5:06 p.m.: Cook says they have had 15 acquisitions this year.
5:05 p.m. Cook says they have sold 150 million iPhones during fiscal year.
5:04 p.m.: "We are winning with all our products in all the ways that are most important to us," Cook said.
He is running through all the recent product launches. Says all of these are things only Apple could have delivered.
5:03 p.m.: Cook says "Apple's business is stronger than ever."
5:02 p.m.: CEO Tim Cook is taking the line.
5:00 p.m.: If you want to listen in on Apple's earnings call, you can do so right here.
—By CNBC's Cadie Thompson. Follow her on Twitter