The work-from-home trend helped Apple boost sales by 11 percent last quarter — and now it’s reducing its stock price by 75 percent to attract new investors.
The iPhone maker on Thursday reported earnings per share of $2.58 on revenue of $59.7 billion, beating the Street’s expectations of $2.04 on sales of $52.2 billion.
Apple also announced a 4-for-1 stock split which will take place at the end of August, meaning that investors will be able to buy a piece of the tech titan for a quarter of its current price.
The stock jumped more than 5 percent in extended trading on the surprise upside, sending Apple’s shares to a new all-time high of $404.50.
The hardware giant cited strong demand for its apps and work-from-home devices like iPads, sales of which shot up 31 percent compared to last year.
Sales of the company’s iconic iPhone clocked in at around $26.4 billion, a gain of less than 2 percent over last year — but it still bested analysts’ expectations by $4 billion. The numbers were fueled by a “strong” launch for Apple’s new budget iPhone SE, which was introduced in April, CEO Tim Cook said.
“I think the economic stimulus that was in place — and I’m not just focused on the U.S., but more broadly — was a help,” Cook said in an interview with Reuters.
The company also saw strong sales in its greater China region, where aggressive pricing during a June holiday shopping season and lower-priced iPhone SE model released in April helped boost sales 2 percent to $9.3 billion from $9.16 billion a year earlier.
Sales in its services segment, which includes businesses like iCloud and Apple Music, rose 14.8 percent to $13.2 billion, compared with $11.5 billion in the year-ago quarter.
Apple’s wearables, which include the Apple Watch and mega-popular AirPods, rose 16.7 percent to $6.5 billion, surpassing forecasts of $6 billion.
Apple did not give a fiscal fourth-quarter forecast.
Recent reports indicate that Apple’s next lineup of iPhones will be announced in the “latter half of October.” The date is later than its traditional September launch, but will still see the company’s first 5G iPhone hit stores just in time for the all-important holiday season.
Apple shares are up 30 since its last earnings report, and briefly hit an all-time high of $399 earlier this month. The iPhone maker has had a rollercoaster quarter, triumphantly reopening its stores across the country after an extended shutdown before having to shutter a number of them when cases began to climb again.
For the second earnings report in a row, Apple did not give a forecast for the upcoming quarter, citing uncertainty brought on by the virus.
With Post wires.
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July 31, 2020 at 04:06AM
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Apple smashes earnings expectations, announces 4-for-1 stock split - New York Post
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