Earnings Reports

Google Ad

Consumer electronics giant Apple reported better than expected june quarter earnings Thursday. Revenue from iPhones rebounded. $AAPL revenues increased 11%, despite the COVID-related supply chain disruptions.Apple also announced 4-for-1 stock split

IPhone 8

Apple (NASDAQ: $AAPL) Reported Earnings After Close Thursday

“We’re conscious of the fact that these results stand in stark relief during a time of real economic adversity for businesses large and small, and certainly for families,” CEO Tim Cook said on a call with analysts.

$2.58 Beat $2.04 EPS Forecast AND $59.69B Beat $52.25 Billion forecast in revenue 

Earnings 

Apple for the quarter ended June 27 beat estimates compared with analysts’ expectations based on Refinitiv consensus estimates:

  • EPS: $2.58 vs. $2.04 est.
  • Revenue: $59.69 billion vs. $52.25 billion est. i
  • iPhone revenue: $26.42 billion +1.5% yr/yr vs. $22.37 billion est.
  • Services revenue: $13.16 billion +14.8% yr/yr vs. $13.18 billion est.
  • iPad +22% yr/yr to $7.08 bln;
  • Mac revs +31% yr/yr to $6.6 bln;
  • Wearables +16% yr/yr to $6.6 bln.

iPhone numbers strong sales of the SE phone which launched in April 2020. Its $399 starting price point makes it competitive in emerging markets and attractive for people who do not need all the bells and whistles of the high-end iPhones.

Note that Apple pushed back the availability of its new iPhones "a few weeks later" than its usual September timeline due to supply chain issues stemming from plant closures and travel restrictions.

 AAPL Iphone change q2 2020

Market Reaction > Apple. Nasdaq: AAPL

Market Reaction After hours 409.55 +24.79 (+6.44%)) New ATH

Highlights

  • iPad revenue: $6.58 billion vs. $4.88 billion est.
  • Mac revenue: $7.08 billion vs. $6.06 billion est.
  • Other Products revenue: $6.45 billion vs. $6 billion est.
  • Gross margin: 38.0% vs. 38.0% est.

Back last January Apple warned on revenue, the last time it warned on revenue guidance was 15 years prior. The Cook announcement merely confirmed specualtion after guidance cuts by a number of reliant material suppliers and partner manufacturers. With the revenue decline and unit sales figures removed from its financial reporting operating margin becomes a keen focus. From here Apple has bounced to new all time high

 AAPL Earnings Q2 20

Stock Split

Apple announced in its fiscal third-quarter earnings that the Board of Directors has approved a four-for-one stock split.

The shares will be distributed to shareholders at the close of business on August 24, and trading will begin on a split-adjusted basis on August 31. That means that, for each share of Apple stock that an investor owns, they’ll receive three additional shares. It also makes single shares in Apple more affordable for investors to buy. It follows a similar move Apple made in 2014, when it offered a 7-to-1 stock split.At the time, Apple was trading above $600 per share. The split brought shares of Apple to about $92 a share.

This is Apple’s fifth stock split since it went public. It also split on a 7-for-1 basis on June 9, 2014; a 2-for-1 basis on February 28, 2005; a 2-for-1 basis on June 21, 2000; and on a 2-for-1 basis on June 16, 1987.

Outlook

The company declined to issue guidance for the second quarter in a row, due to uncertainty from the pandemic, but Apple CFO Luca Maestri said on a call with analysts that the company expects iPhone supply in the fall to be delayed for a few weeks. Apple usually releases new iPhones in late September, but the coronavirus pandemic has disrupted schedules and nearly halted business travel.

Cook added that about 75% of Apple’s retail stores are open around the world, after closures earlier this year, and highlighted a “very nice uptick” in users switching to iPhone from Android, partially driven by the iPhone SE, a cheaper $399 model released earlier this year.

Source: Apple, TradersCommunity, AlphaStreet

Live From The Pit

Log in to comment
Discuss this article in the forums (0 replies).