Apple’s latest stock split makes it a lot more accessible for retail investors: Shareholder
Apple Inc. reported quarterly revenue that crushed Wall Street forecasts after locked down consumers snapped up new iPhones, iPads and Mac computers to stay connected during the pandemic. The stock jumped more than five per cent in extended trading.
The world’s largest technology company also announced a four-for-one stock split after its shares surged more than 80 per cent in the past year.
Fiscal third-quarter revenue came in at US$59.7 billion, a record for the June period. That was up 11 per cent from a year earlier and smashed analysts’ estimates of US$52.3 billion, according to data compiled by Bloomberg.
The pandemic is keeping people at home, which has spurred demand for Apple devices to help millions of consumers use the internet to keep in touch with friends, family and co-workers.
“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives,” Apple Chief Executive Officer Tim Cook said in a statement.
Apple’s cheaper iPhone SE, released in April, was also well timed for leaner economic conditions. There were also minor updates to the iPad Pro and MacBook Pro, and new accessories like an iPad Pro keyboard with trackpad. The company plans to launch new Mac computers with its own processors, a cheaper HomePod, and a slew of new iPhones later this year.
The Cupertino, California-based technology giant didn’t provide guidance again due to the ongoing impact of COVID-19.
Revenue from the iPhone was US$26.4 billion, beating analysts’ expectations of US$21.3 billion. For the iPad, Apple reported revenue of US$6.6 billion, a strong increase from US$5 billion a year ago. The Mac brought in US$7.1 billion, another big jump from US$5.8 billion in the same period of 2019.
Services, which includes the App Store, Apple Music and iCloud subscriptions, generated sales of US$13.2 billion, up from US$11.5 billion a year ago and roughly in line with Wall Street expectations.
The June quarter also included earnings per share of US$2.58, an 18 per cent increase, and a record for the company’s installed base of active devices.
Apple’s Wearables, Home and Other Products category, one of the firm’s fastest segments that includes the Apple Watch and AirPods, brought in US$6.5 billion in revenue. That beat Wall Street predictions of US$6.1 billion.