Apple Easily Beats Estimates, Announces 4-for-1 Stock Split

Apple shares were rising in after-hours trading on Thursday after the iPhone giant topped revenue and earnings estimates for its fiscal third quarter ending in June and also announced a 4-for-1 stock split effective as of the end of August.

For the quarter ending June 30, the first full quarter that overlapped with Covid-19, Apple reported earnings per share of $2.58 (up 18% year over year) and total revenue of $59.7 billion (up 11%) and topping consensus estimates of $2.04 and $52.24 billion, respectively.

Shares of surged 5% in after hours trading to $403.49 following the release.

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Apple CEO Tim Cook. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation.”

Apple did not provide fiscal guidance for the current quarter.

Apple also announced its first stock split since June 2014, when it split 7-for-1. Depending on where it trades at the end of August, Apple’s shares could trade around the $100 mark, making it easier to buy for small investors.

Apple’s iPhone revenue came in at $26.42 billion, above estimates of $22.2 billion. Many of Apple’s retail stores worldwide were temporarily closed during the quarter, though some have now reopened at least on a minimal basis.

Apple reported $13.16 billion in services revenue, roughly in line with a consensus of $13.13 billion. Total revenue in China of $9.33 billion narrowly missed a consensus of $9.45 billion.

“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times,” said Luca Maestri, Apple’s CFO. “The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories.

The company generated $16.3 billion in operating cash flow during the quarter, a June quarter record.

In addition, Apple’s board declared a cash dividend of $0.82 per share of its common stock, payable on August 13.

Apple shares were up 28% year to date heading into earnings.

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