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Home / Business / Apple beats earnings and announces stock split, sending shares to record level

Apple beats earnings and announces stock split, sending shares to record level



Apple Inc. she reaped the COVID-19 crisis to report record results on Thursday, and the company said it plans to split its stock to try to make it “more accessible to a wider investor base.”

Apple shares AAPL,
+ 1.21%
gained 5.2% in after-hours trading, pushing shares above $ 400, a level that the stock was never overshadowed in regular trading.

The company posted third-quarter fiscal revenue of $ 11.25 billion, or $ 2.58 a share, up from $ 1

0.04 billion, or $ 2.18 a share, in the previous quarter. Analysts surveyed by FactSet had long been anticipating a $ 2.05 share.

Apple’s revenue for the quarter rose to $ 59.7 billion from $ 53.81 billion, while the FactSet consensus was $ 52.24 billion. The company generated $ 26.42 billion in revenue from its iPhone segment, compared to $ 26.99 billion a year ago and the $ 22.2 billion that analysts were expecting. This is the first quarter of the year to include sales of the iPhone SE, Apple’s cheapest-priced smartphone launched in August. International sales accounted for 60% of the company’s revenue in the period.

The company failed to provide a financial forecast for the current quarter in its release but said its board of directors approved a four-for-one stock split. Apple shareholders register from closing the business on August 24th. Trading will start on an adjusted basis in the split on 31 August.

IPad business revenue rose to $ 6.58 billion from $ 5.02 billion, while Macs revenue came in at $ 7.08 billion, compared to $ 5.82 billion a year earlier. Analysts were projecting $ 4.85 billion in iPad revenue and $ 6.03 billion in Mac revenue.

Apple’s fast-growing services segment saw revenue rise to $ 13.16 billion from $ 11.45 billion in the quarter, above estimates to $ 13.1 billion. Revenue from clothing, accessories and household products grew to $ 6.45 billion from $ 5.5 billion and came in ahead of estimates, which called for $ 5.98 billion.

The company was forced to temporarily close its stores outside China due to the pandemic and while it began to gradually open some of its locations in late May, then went to reopen some of them in states where it was the crisis. it gets worse.

The report comes a day after Chief Executive Tim Cook confronted lawmakers at a hearing of the House Judiciary Committee focused on antitrust issues. Cook’s representatives grilled over Apple’s App Store practices, including the fees it charges developers to sell digital services through iPhone apps and whether Apple has pulled a rival app that it considers are competitive for its own native offerings.

Amazon.com Inc. AMZN,
+ 0.60%,
Alphabet Inc. GOOGL,
+ 0.97%
GOOG,
+ 0.62%,
and Facebook Inc. FB,
+ 0.51%,
whose top executives were also questioned at the hearing, teamed up with Apple to report June-quarter earnings on Thursday afternoon.

Apple shares have risen 30% in the last quarter as the DJIA Industrial Average Dow Jones,
-0.85%,
of which Apple is a component, earned 8%.


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