Apple stock topped $ 400 on strong quarterly earnings and $ 4-for-1 split

Apple shares rose to a first-ever high, surpassing the $ 400 level in aftermarket trading, the company crushed street estimates after second-quarter results, and announced a 4-for-1 stock split Of.

Apple (AAPL) reported revenue in its fiscal third quarter ending June 30 of $ 59.7 billion, up 11% from a year earlier, and ahead of the consensus of the Wall Street analyst at $ 52.1 billion. Profits were $ 2.58 per share, outpacing the Street consensus by $ 2.09.

Product revenue was 9.9%, while services were 14.8%. The company showed sales growth across all major product segments with sales of the iPhone up 1.6%, Macs 21.6%, iPad up 31% and 16.7%.

“Apple’s June quarter was driven by double-digit growth in both products and services, and growth in each of our geographic segments,” Apple CEO Tim Cook said in a statement. “In an uncertain time, this performance is a testament to our customers ‘lives and Apple’s relentless innovation to our products’ key role.”

Chief Financial Officer Luca Masri said the quarter was “strong evidence of Apple’s ability to execute and execute in a new way during challenging times.” He said that the company’s active installed base for equipment has reached a high level in all geographies and all major product categories.

In 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 said that Apple saw supply shortages on both the iPad and Mac amidst strong demand. Wearable growth fell short of expectations. Cook said that Apple has doubled its 2016 revenue revenue six months before its original target at the end of 2016. He also said that the recent Virtual Worldwide Developers Conference attracted more than 22 million viewers.

The company said it has more than 550 million paid subscriptions in its services business and expects to reach 600 million before the end of the calendar year.

Apple did not announce financial guidance in the press release. CFO Messry confirmed on the call that the company was not providing revenue or margin guidance for the September quarter, but did provide some clues. Specifically, he notes that last year the company made new iPhones available at the end of September, but this year the new phones will be “a few weeks later”, a small, but notable addition to the expected fall launch of the first 5G iPhones Reference, which will now appear in October.

Apple said its board announced a 4-for-1 stock split, effective August 31. It will be the fifth stock split in the company’s history, the most recent 7-for-1 split in 2014. The last partition was in 2005. , 2000, and 1987. While stock splits should logically have no effect on stock prices, investors prefer them, and they often reduce short-term share gains when announced.

In after-hours trading, Apple shares are up 4.6%, to $ 402.73. The stock has never closed a regular trading session above $ 400. With the rally, the stock is approaching a market cap of $ 1.75 trillion.

Write Eric J. at [email protected] Savitz


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