Apple earnings: Apple crushes Q3 expectations, announces 4-1 stock split

In this article:

Apple (AAPL) reported its Q3 2020 earnings on Thursday, surpassing expectations for the period.

These are the most important numbers from the report compared to what analysts were expecting as compiled by Bloomberg.

  • Revenue: $59.7 billion versus $52.3 billion expected

  • Earnings per share: $2.58 versus $2.07 expected

  • iPhone revenue: $26.42 billion.

  • Services revenue: $13.2 billion versus $13.1 billion expected

  • Accessories: $6.5 billion versus $6.1 billion expected

Apple’s quarter was far outpaced what analysts had expected of the company thanks to strong performance from its accessories and services arms. Both iPhone and Mac revenue were also up in the quarter.

With the company’s stock price approaching $400 a share, the firm announced a 4 to 1 stock split alongside its earnings report.

Apple’s earnings come just a day after CEO Tim Cook sat before the House Judiciary Committee’s Subcommittee on Antitrust, Commercial, and Administrative Law to answer accusations that the company abuses its market power to stifle competition in the Apple App Store.

The company’s Q3 report, however, hasn’t been much of a focus for analysts, as much of the conversation about Apple has revolved around the tech giant’s upcoming launch of its iPhone 12. The next-generation iPhone is expected to be Apple’s first 5G-capable device and could lead to a so-called “super cycle,” during which the company would see a larger than normal uptick in iPhone sales.

The idea is that consumers who have held on to their devices for several years will jump at the chance to get a new iPhone with a new form of cellular connectivity that promises dramatically increased data.

10 September 2019, US, Cupertino: Tim Cook, managing director of Apple, talks to visitors of the launch event after his performance on the stage of the Steve Jobs Theater on the company campus. Photo: Christoph Dernbach/dpa (Photo by Christoph Dernbach/picture alliance via Getty Images)
Apple CEO Tim Cook. (Photo by Christoph Dernbach/picture alliance via Getty Images)

But with consumer personal consumption spending in Q2 falling a whopping 34.6% due to COVID-19 shutdowns, and more than 50 million Americans out of the workforce, investor hopes of a massive uptick in year-over-year iPhone sales in the coming quarters may not be in the cards.

Apple’s stock was up more than 4% following the report.

Correction: iPhone revenue expectations have been revised.

Got a tip? Email Daniel Howley at [email protected] over via encrypted mail at [email protected], and follow him on Twitter at @DanielHowley.

Yahoo Finance’s The Market Wake-Up
Yahoo Finance’s The Market Wake-Up

More from Dan:

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit

Advertisement