Apple share prices continued their skid in premarket trading Wednesday after the company just barely beat earnings expectations, but Welch Capital Partners' Dan Ernst said investors should remember that the business is growing.
"This is a well-run company with a fantastic management team. They're returning cash to shareholders, growing earnings. They have product acceleration. I see nothing but runway for the company and for the stock, which is why we own it," Ernst told CNBC's "Squawk Box."
He noted that Apple's earnings are growing about 40 percent year over year and its stock trades at 12 times forward earnings, while S&P 500 earnings might grow by 7 percent and trades at 16 times earnings.
On Tuesday, the company posted fiscal third-quarter earnings per share of $1.85 on revenue of $49.6 billion. Analysts expected Apple to report earnings of $1.81 a share on $49.43 billion in revenue, according to a consensus estimate from Thomson Reuters.
Ernst said he was not concerned about the iPhone's growing importance. Apple derived 63 percent of its revenue from its handset in the current quarter, up from 53 percent a year ago.
"Apple is the only large tech company that I can think of that has so many organically introduced product categories that they're so large that they have to be broken out by SEC law," he said.
"People always complain about Google and Facebook and Amazon, they don't break out enough information ... It's not [that] Apple does that because they feel nice about it. They want to give us more information. They actually have to."