Coinspeaker
Apple Reveals Earnings for Fiscal Q2, Results Beat Expectations, AAPL Stock Down 3% Now

Apple Inc (NASDAQ: AAPL) announced on Thursday its earnings for its fiscal Q2. Earnings per share (EPS) in the second quarter of fiscal 2020 stood, therefore, at $2.55. That represents a 4% rise from the same period a year ago and is also better than analysts’ expectations.

Revenue also came in above market estimates, rising 1% year on year to $58.3 billion. This is mostly boosted through higher sales of wearables and services. In the meantime, iPhone revenue decreased by 7% to $29 billion amid the COVID-19 pandemic. Mac and iPad sales were also down.

CFO Luca Maestri said that iPhone performance will be worse, on a year-to-year basis, in the June quarter than it was in the March quarter.

He said:

“On iPhone and Wearables, we expect a year-over-year revenue performance to worsen in the June quarter, relative to the March quarter. On iPad and Mac, we expect the year-over-year revenue performance to improve in the June quarter.”

Analysts surveyed by Refinitiv estimated $2.26 in adjusted earnings per share on $54.54 billion in revenue for the fiscal second quarter, with a 38.4% gross margin. With respect to fiscal third-quarter guidance, analysts polled by Refinitiv were looking for $51.54 billion in revenue and a gross margin of 38.5%. Still, the impact of the coronavirus outbreak on economic activity has made it more difficult for analysts to accurately predict companies’ results.

CEO Tim Cook said:

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables.”

The company added that it plans to continue to buy back its shares amid the coronavirus crisis. It also has commissioned growth of $50 billion in the company’s share repurchase program, in addition to a dividend of $0.82 per share. During the company’s fiscal 2019, it spent $67.1 billion repurchasing shares and $14.1 billion on dividends.

The company’s retail stores around the world, except in China and one in Korea, are still closed until further notice. However, Apple has continued to launch products in its Q2 amid signs of a global economic slowdown.

Cook added:

“It was a very unique quarter. I’ve never had anything quite like this. I hope to never have it again, but I’m incredibly proud of the company and what was achieved during that period of time. This may not have been the quarter it could have been absent the pandemic, but I don’t think I can recall a quarter where I’ve been prouder of what we do or how we do it.”

He also mentioned the company’s TV subscription service, Apple TV+ that was doing pretty good as more people watched content because of the lockdown.

Todd Gordon, managing director at Ascent Wealth Partners gave an “All Clear” for the Apple stock.

He said:

“We still like the stock. We hold it in all three of our portfolios at Ascent. I think the value proposition for the company is very much intact. Moreover, on the chart, this pullback has really been quite garden variety.”

He also added that this was only a 35% pullback, which is the second-worst in four major pullbacks since 2012, and this is assuming the low is in.

Apple (AAPL) stock fell 2.38% in after-hours trading to $286.80 and is down 3.34% in the pre-market. Now its price is $284. However, yesterday before the results were announced, the stock was up 2.11% and it was trading at $293.80. The market cap is $1.29 trillion.

Apple Reveals Earnings for Fiscal Q2, Results Beat Expectations, AAPL Stock Down 3% Now

Similar to Notcoin - Blum - Airdrops In 2024

origin »

221 +