Market Overview

Apple Shares Breach $400 After Tech Giant Announces Record Quarter, Stock Split

Apple Shares Breach $400 After Tech Giant Announces Record Quarter, Stock Split

Apple Inc. (NASDAQ: AAPL) shares crossed over the $400 threshold and are trading in record territory after the company announced forecast-beating results for the third quarter of fiscal year 2020. The company also announced a four-for-one stock split.

Key Apple Statistics: The company reported third-quarter earnings per share of $2.58 compared to $2.18 in the year-ago quarter. Analysts, on average, estimated EPS of $2.04 for the quarter, according to the Yahoo database.

Revenues rose 11% year-over-year from $53.84 billion to $59.7 billion, exceeding the consensus estimate of $52.25 billion. Product revenues accounted for 78% of the total.

International sales accounted for 60% of the total revenues, Apple said. In the second quarter, international sales made up 62% of the total.

"Apple's record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments," said CEO Tim Cook.

Apple Revenues, Broken Up By Product, Geography: Apple's flagship product, the iPhone, fetched revenues of $26.42 billion, contributing 44.3% to the top-line. The Street had modeled iPhone revenues of $22.2 billion.

The Services business ringed in revenues of $13.16 billion or 22% of the total revenues.

Mac, iPad and wearables, home and accessories accounted for $7.08 billion, $6.58 billion and $6.45 billion of revenues, respectively.

Geographically, Americas contributed $27.02 billion or 45.3% to the top-line. Europe, Greater China, Japan and rest of Asia-Pacific reported revenues of $14.17 billion, $9.33 billion, $4.97 billion and $4.20 billion, respectively.

"The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories," said Luca Maestri, Apple's CFO.

Other Key Metrics: Apple's gross margin expanded from 37.6% in the year-ago quarter to 38%.

The company said it generated a record operating cash flow of $16.3 billion during the third quarter.

Apple Announces Stock Split, Dividend: The company said its board has approved a four-for-one stock split, with the stock beginning to trade on a split-adjusted basis Aug. 31.

The board also declared a cash dividend of 82 cents per share.

Related Link: CEOs Of Amazon, Apple, Facebook And Google Defend Companies During Congressional Antitrust Testimony

Apple Outlook: The consensus fourth-quarter estimates call for Apple to report EPS of $2.78 on revenues of $61.54 billion.

For the fiscal year 2020, analysts estimate EPS of $12.43 and revenues of $264.1 billion.

The spotlight is now on the impending iPhone 12 launch. The stage is set for a massive, pent-up iPhone cycle heading into the fall, both in the key China region and globally, Wedbush analyst Daniel Ives said.

AAPL Stock: Apple shares have gained about 30% in the year-to-date period. For the second quarter, the stock gained a steeper 44%.

In after-hours trading, the stock was surging 4.77% to $403.13.


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