Apple Inc. (AAPL) – Get Report Shares hit a high for the first time on Friday, trading strongly with the $ 400 mark for the first time, as the tech giant blew up third-quarter earnings due to an epidemic due to store-closures and supply chain disruptions .
Apple said the three-month earnings ending in June, the group’s fiscal third quarter, rose 25.9% to $ 2.58 per share from the same period last year, ahead of the Street consensus forecast of $ 2.05 per share. The group said its $ 59.7 billion group revenue in street-beating increased 13.4%, benefiting every geographic region and across all product lines.
IPhone revenue rose 2% from last year to a forecast $ 26.4 billion, despite a COVID-19 headwind, thanks in part to a solid start for the $ 399 iPhone SE, which was launched earlier this year. Meanwhile, iPad and iMac sales rose 22% and 31%, as the shift from work to house-to-computer purchases. Services revenue raised $ 13.2 billion, an embarrassment to Apple’s recent record and up 15% from last year.
“We are very pleased with how we worked on the iPhone. This is what we thought in a big way because May and June were much better. If you look at the iPhone overall, the things I find very optimistic are the size of the active install base. Is., “Apple CEO Tim Cook told investors on a conference call late Thursday.
“The established base is growing and new customer numbers are still very high and therefore a good thing for me for the future,” he said. “Clearly, as we indicated, there is some amount of work from home and distance education that positively affects the results of Macs and iPads.”
Cook said, “They probably affect wearables and iPhones, the other direction. And on Macs and iPads, these are the productivity tools people are using to keep up with their work or their schoolwork, “Cook said. “And we believe we’re going to make a strong comeback in the school season. Sitting here today, it definitely looks like this.”
Apple shares were up 6.2% in early Friday trading to change hands at $ 408.35 each, a move that would increase the stock’s year-over-year gain to nearly 40% and The Cupertino, California-based company will value approximately $ 1.78 billion.
The stock’s impact on the Dow Jones Industrial Average, however, is set to go to waste next month, as the group has announced a four-for-one stock split that will take effect on August 31. 7% to $ 410 per share adds about 185 points to The Dow. A similar gain at $ 110 per share would add just 46 points to the price-weighted average.
Apple declined to offer near-term profit forecasts, given the “worldwide uncertainty” and ongoing COVID-19 impact, but noted that it expects continued gains for the iPhone, Its iPhone 12 launched in September despite a possible delay of “a few weeks”.
Canacord Genuity Analyst T stated, “Management has forecast that double-digit growth continues with iPhones during Q4 / F20 for all hardware products except iPhones, which is difficult to joint with a similar increase. Michael Walkley, who buys rating on the stock with a $ 460 price target.
“Starting in Q1 / F21, we believe Apple is well positioned to benefit from the 5G upgrade cycle and forecast strong iPhone growth to contribute to overall strong growth trends as the 5G smartphone ramps up and Apple establishes its Aadhaar and high-margin services increases revenue, ”he said. “Apple’s ecosystem approach, including an established base that is more than 1.6 billion devices globally, should continue to generate strong service revenue, and we will continue to drive high-margin services revenue to drive overall company growth.” Expect growth. ”