Apple’s earnings day is upon us, and with it, we learn how the company performed during the fiscal third quarter of 2020, despite the ongoing COVID-19 pandemic. It should be noted that Apple did not provide any official guidance for the third quarter of 2020 due to the economic uncertainty caused by the pandemic.
How did the COVID-19 outbreak affect Apple’s business during the third quarter? The company has announced revenue of $ 59.7 billion and earnings of $ 11.25 billion. This compares to $ 53.8 billion in revenue and $ 10.04 billion in earnings reported in the same quarter last year.
Apple CEO Tim Cook, who had just received a five-hour testimony before Congress less than 24 hours ago, had this to say about Apple’s third quarter 2020 performance:
Apple’s record for the June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments. In uncertain times, this performance is a testament to the important role our products play in the lives of our customers and to Apple’s relentless innovation. This is a challenging time for our communities, and, from Apple’s new $ 100 million Justice and Racial Equity Initiative to a new commitment to being carbon neutral by 2030, we are living the principle that what we do and do should create opportunities and leave the world better than we found it.
And CFO Luca Maestri added:
Our performance in the June quarter was strong evidence of Apple’s ability to innovate and execute in tough times. Record business results brought our active installed device base to a record high in all of our geographic segments and all major product categories. We grew EPS by 18% and generated operating cash flow of $ 16.3 billion during the quarter, a record for the June quarter for both metrics.
As we entered the 2020 third-quarter earnings release for Apple, there was quite a bit of agreement among analysts that the third-quarter results are not particularly important given the current COVID-19 pandemic. Some companies, such as Morgan Stanley, expected Apple to exceed expectations, thanks to better-than-expected product sales driven by people who need new technology to work from home.
Other banks, like Goldman Sachs, took the opposite stance, predicting that Apple would disappoint and that buying AAPL shares was simply too risky. Goldman Sachs also predicted that Apple would not publish any guidance for the fourth quarter of 2020, which turned out to be the case.
Apple’s board of directors also declared a cash dividend of $ 0.82 per share and announced a four-for-one stock split:
The Board of Directors also approved a four-for-one stock split to make the shares more accessible to a broader investor base. Each registered shareholder of Apple at the close of business on August 24, 2020 will receive three additional shares for each share held on the registration date, and trading will begin in a split manner on August 31, 2020.
AAPL Q3 2020 earnings per product
As is customary, Apple does not report unit sales for any of its hardware products. Instead, it reports a breakdown of revenue by product category. Here are those numbers for fiscal third quarter 2020:
- $ 26.42 billion: iPhone (up 1.66% YoY)
- $ 13.16 billion: Services (up to 14.85% year-on-year)
- $ 7.08 billion: Mac (up to 21.63% yoy)
- $ 6.58 billion: iPad (up 31.04% year-on-year)
- $ 6.45 billion: Wearables, home and accessories (Up 16.74% YoY)
Immediately after Apple’s record earnings in the third quarter of 2020, AAPL shares rose nearly 5% in after-hours trading, beating the $ 400 mark.
You can find Apple’s full third quarter 2020 earnings release on the Apple Newsroom website. As usual, the people of Six colors They have some great charts that highlight Apple’s numbers for the quarter.
Stay tuned 9to5Mac for more coverage of the AAPL earnings call with Tim Cook and Luca Maestri below. You can listen to the audio stream of the AAPL Q3 2020 earnings call live on top of the hour here, or listen to it shortly after the call with Apple Podcasts.
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