Apple demolished Wall Street forecasts in its fiscal third quarter, generating revenue of $ 59.7 billion and earnings per diluted share of $ 2.58 billion.
The consensus of the analysts was an income of $ 52.25 billion, which would have been a slight fall compared to the same quarter of the previous year. Earnings per share were expected to hit $ 2.04.
Along with the financial results, the company said its board approved a four-for-one stock split “to make the shares more accessible to a broader base of investors,” according to the earnings release.
Each registered shareholder of Apple at the close of business on August 24 will earn three additional shares for each share held on the record date. Division-adjusted trading will begin on August 31.
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Shares in Apple, which had increased sharply along with those of other tech companies during COVID-19, won in off-hours trading, breaking the $ 400 mark.
Investors await news on a key issue facing Apple in its high-profit quarter, October through December. Due to the pandemic, he said he was unable to increase production on his next iPhone, leaving questions about whether it will be ready in time for the holiday season.
In the quarter ended June 27, Apple’s services unit continued to record strong growth, rising to $ 13.2 billion from $ 11.5 billion in the same period last year. With television, music, apps, news, video games, and other businesses incorporated into the services, the company has been trying to lessen its dependence on physical products, which can be cyclical and face increased price sensitivity.
Namely, iPhone sales, although they still represent almost half of the quarterly total, increased only 1% from the previous year to reach $ 26.4 billion.
International sales accounted for 60% of total revenue, the company said. The period also saw the widespread closure of retail stores in many countries due to COVID-19.
