Apple trounced Wall Street’s expectations with a blowout third quarter earnings report.
The technology titan reported revenue of $59.7 billion, an increase of 11 percent from the $53.8 billion in revenue that Apple reporter in the prior-year quarter. The company’s earnings per share of $2.58 was also an improvement on the $2.18 a share that Apple earned in the same period in 2019. Those numbers easily bested projections. Analysts had expected Apple to deliver revenues of $52.3 billion and earnings of $2.07 a share.
The robust earnings picture is all the more impressive because it comes in the middle of the coronavirus pandemic, a public health catastrophe that’s resulted in furloughs, layoffs, and economic anxiety. And yet, despite the grim headlines, all of Apple’s product lines showed growth, particularly iPad sales, which rose more than 30%.
But the big question for Apple watchers will be whether or not the company is on track to deliver its new 5G iPhone 12 in September. There have some indications that it may be delayed .
“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation,” said Tim Cook, Apple’s CEO.
Apple also declared a cash dividend of $0.82 per share of the company’s common stock and announced that its board has approved a four-for-one stock split to make the stock more accessible. That will take place at the end of August.
Shares of Apple surged in after-hours trading, topping out at over $401 a share. The company’s report comes during a busy day for tech earnings, with Amazon, Alphabet, and Facebook all unveiling their quarterly results.
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