Apple Surpassed Expectations in the Third Quarter

Tech giant Apple reported better results than were expected despite the coronavirus pandemic. Their revenue reached $59.7 billion in the third fiscal quarter. Moreover, the company also announced its plans to give investors three additional shares of Apple per share already owned at the end of August as part of a 4-1 stock split.

Importantly, Apple saw widespread retail closures during the third fiscal quarter. However, strong online sales, as well as work-from-home trends, helped achieve great results.

Nonetheless, the tech giant declined to issue guidance for a second quarter in a row, due to the uncertainty regarding the coronavirus pandemic. As a reminder, Apple usually releases new iPhones in late September. However, the pandemic disrupted schedules and nearly halted business travel. According to Apple’s CFO Luca Maestri, the company expects the iPhone supply in the fall to be delayed for a couple of weeks.

Apple and its results

The fiscal third quarter ended as of June 27. Earnings per share surpassed expectations and reached $2.58. Moreover, revenue also exceeded expectations, $59.69 billion vs. $52.25 billion estimated.

Also, iPhone revenue reached $26.42 billion. However, services’ revenue failed to meet the expectations.

It is worth mentioning that, Apple’s business is highly seasonal. Furthermore, its revenue was the highest the company ever reported in its third quarter. Usually, the third quarter is the slowest of the year for the tech giant.

Revenue increased by nearly 11% year-over-year. Also, every major product line saw year-over-year growth. Notably, services were up 14.85% compared to the same period of time last year.

Interestingly, Apple’s stock split is the company’s fifth in its history. The first split took place in 1987. Moreover, Apple also declared a $0.82 cash dividend payable on August 13. The company reported $193.82 billion in cash on hand.

Many products produced by Apple can be useful during at-home quarantines amid the coronavirus pandemic.