Coinspeaker
AAPL Stock Rises Over 6% after Apple Reveals Its Q3 Earnings Report

American multinational technology giant Apple Inc (NASDAQ: AAPL) announced on Thursday its fiscal Q3 earnings blowing past Wall Street’s expectations, reporting revenue of $59.69 billion. Apple Q3 earnings per diluted share stood at $2.58, up 18 percent. International sales accounted for 60 percent of the quarter’s revenue. iPhone revenue stood at $26.4 billion for the quarter, an increase from the year-ago quarter.

After the Q3 earnings report was revealed, Apple (AAPL) stock rose by 6.44% to $409.55 in the after-hours session.

Tim Cook, Apple CEO, stated:

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments.”

He noted that during the uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation.

Luca Maestri, Apple CFO, said:

“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times.”

The record business results drove the company’s active installed base of devices to an all-time high in all of its geographic segments and all major product categories. “We grew EPS by 18 percent and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics,” he concluded.

During the earnings report, the Board of Directors announced it has approved a four-for-one stock split.

What does this exactly mean? This means that, for each and every share of Apple stock that an investor owns, they will get three additional shares. It also makes single shares in Apple more affordable for investors to buy. Something quite similar happened back in 2014 when Apple took a big leap toward becoming “shareholder-friendly” and announced a 7-to-1 stock split, a move that shaved off hundreds of dollars from current share prices. At that time, Apple was trading above $600 per share. The split brought shares of Apple to about $92 a share.

Stock splits are somewhat considered cosmetic steps and do not essentially change anything about the company, except that it can make the shares accessible to a larger number of investors because of its cheaper price.

Since Apple stock currently trades above $380, it means investors should expect to again have a chance to buy a share of Apple for around $100, depending on where the stock trades at the end of August.

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.

According to the earnings report, Apple now has $193.817 billion cash on hand. That’s more than the company had in the fiscal second quarter of 2020 when it reported a $192.8 billion cash pile. It’s however less from Apple fiscal Q3 2019 earnings when it reported $210.6 billion in cash. Apple confirmed it is investing in new services, like Apple TV+ original TV shows and movies. It also spent $13.8 billion in research and development over the last 9 months.

AAPL Stock Rises Over 6% after Apple Reveals Its Q3 Earnings Report

Similar to Notcoin - Blum - Airdrops In 2024

origin »

247 +