Shares of Apple rose to a high level for after-hours trading after crossing the $ 400 level for the first time, after the company posted second-quarter results. crushed estimates in a street, and announced a stock split to four for one.
Apple (AAPL) reported revenue for its third quarter ended June 30 of $ 59.7 billion, up 11% from a year ago, well ahead of the Wall Street analyst’s consensus for $ 52.1 billion. Profits were $ 2.58 a share, up from the Street consensus by $ 2.09.
Revenue from goods increased 9.9%, while services increased 14.8%. The company showed sales increases in all major product areas, with iPhones up to 1.6%, Macs up to 21.6%, iPad up to 31%, and wearables 16.7%.
“Apple’s June quarter record was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” the Chief Executive said. of Apple, Tim Cook in a statement. “In uncertain times, this performance is a testament to the important role our products play in the lives of our customers and Apple’s relentless innovation.”
CFO Luca Maestri added that the quarter was “strong evidence of Apple’s ability to innovate and execute in challenging times.” It is said that the active base of the installed equipment company has reached the all-time high level of all geographical segments and major product categories.
At a conference call with analysts and investors on Thursday afternoon, Cook said Apple saw better-than-expected demand for iPhones in both May and June. He added that Apple has seen supply restrictions on both iPads and Macs in a quarter amid strong demand. Wearable growth slows as expected. Cook said Apple doubled its 2016 revenue services six months ahead of its original end-of-year 2020 target. Cook also said the recent World Developers virtual conference drew more than 22 million viewers.
The company said it now has more than 550 million paid subscriptions in its services businesses, and expects to reach 600 million before the end of the calendar year.
The company did not provide financial guidance in the press release announcing the gain. CFO Masestri confirmed on the call that the company is not providing guidance on revenue or margins for the September quarter, but he did give some ideas. In particular, he notes that last year the company made new iPhones available in late September, but that this year the new phones will be “a few weeks later,” a veiled but worth noting for the launch of the expected fall of the first 5G iPhones, which now appears to be coming in October.
Apple said its board declared a four-to-one share split, effective Aug. 31. This is the fifth stock split in the company’s history, most recently a 7-to-one split. 1 in 2014. Previous divisions took place in 2005, 2000 and 1987. While stock splits should logically have no impact on stock prices, investors tend to like them, and often boost short-term share earnings when be announced.
After trading hours, Apple shares are up 4.6%, to $ 402.73. The stock never closed a regular trading session above $ 400. With the rally, the stock is approaching a market cap of $ 1.75 trillion.
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