Yahoo Movies Apple earnings: Apple crushes Q3 expectations, announces 4-1 stock split
Apple (AAPL) reported its Q3 2020 earnings on Thursday, surpassing expectations for the period.
These are the most important numbers from the report compared to what analysts were expecting as compiled by Bloomberg.
Revenue: $59.7 billion versus $52.3 billion expected
Earnings per share: $2.58 versus $2.07 expected
iPhone revenue: $26.42 billion.
Services revenue: $13.2 billion versus $13.1 billion expected
Accessories: $6.5 billion versus $6.1 billion expected
Apple’s quarter was far outpaced what analysts had expected of the company thanks to strong performance from its accessories and services arms. Both iPhone and Mac revenue were also up in the quarter.
With the company’s stock price approaching $400 a share, the firm announced a 4 to 1 stock split alongside its earnings report.
Apple’s earnings come just a day after CEO Tim Cook sat before the House Judiciary Committee’s Subcommittee on Antitrust, Commercial, and Administrative Law to answer accusations that the company abuses its market power to stifle competition in the Apple App Store.
The company’s Q3 report, however, hasn’t been much of a focus for analysts, as much of the conversation about Apple has revolved around the tech giant’s upcoming launch of its iPhone 12. The next-generation iPhone is expected to be Apple’s first 5G-capable device and could lead to a so-called “super cycle,” during which the company would see a larger than normal uptick in iPhone sales.
The idea is that consumers who have held on to their devices for several years will jump at the chance to get a new iPhone with a new form of cellular connectivity that promises dramatically increased data.
But with consumer personal consumption spending in Q2 falling a whopping 34.6% due to COVID-19 shutdowns, and more than 50 million Americans out of the workforce, investor hopes of a massive uptick in year-over-year iPhone sales in the coming quarters may not be in the cards.
Apple’s stock was up more than 4% following the report.
Correction: iPhone revenue expectations have been revised.
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