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Apple shares fell more than 1% during extended trading on Thursday after the company reported a slight increase in second-quarter revenue to $ 58.3 billion, during a period when supply and demand for the products Apple were negatively affected by the Covid-19 pandemic.
This is how Apple did it:
- EPS: $ 2.55 per share, adjusted
- Income: $ 58.3 billion
- iPhone revenue: $ 28.96 billion
- Service revenues: $ 13.34 billion
- Mac income: $ 5.35 billion
- iPad revenue: $ 4.36 billion
- Income from wearables, home and accessories: $ 10.01 billion
- Gross margin: 38.4%
“In the midst of the most challenging global environment in which we have operated our business, we are proud to say that Apple grew during the quarter,” Apple CEO Tim Cook said during a call with analysts.
Analysts surveyed by Refinitiv expected $ 2.26 in adjusted earnings per share on $ 54.54 billion in revenue for the second fiscal quarter, with a gross margin of 38.4%. Regarding the fiscal orientation of the third quarter, analysts surveyed by Refinitiv were looking for $ 51.54 billion in revenue and a gross margin of 38.5%. However, Covid-19’s impact on economic activity has made it more difficult for analysts to accurately predict companies’ results.
Apple will also continue to buy back its shares amid the pandemic, the company said. He has authorized a $ 50 billion increase in the company’s stock buyback program, in addition to a dividend of $ 0.82 per share. In Apple’s fiscal year 2019, it spent $ 67.1 billion on share buybacks and $ 14.1 billion on dividends.
However, Apple did not issue guidance for the quarter ending in June, as is often the case. The company withdrew the guidance for its second quarter in February when the Covid-19 coronavirus spread in China.
“There was a significant and very steep drop in February. That started to recover in March, and we have seen a bigger recovery in April. So it leaves room for optimism,” Cook said in an interview with Josh of CNBC. Lipton
“We have great confidence in the long term of our business. In the short term, it is difficult to see the windshield to know what the next 60 days will be like, so we are not providing guidance due to that lack of visibility and uncertainty,” Cook said. at the interview. “It was a very unique quarter. I have never had anything like this. I hope I never have it again, but I am incredibly proud of the company and what was accomplished during that time period.”
IPhone revenue dropped to $ 28.96 billion, a decrease of 7% year-over-year. The deficit was partially offset by a 16% increase in service revenue, which includes iCloud, Apple Music and other subscriptions, to $ 13.34 billion. Total revenue growth for the quarter slowed to 0.5% from 9% a quarter ago.
Cook said the company’s TV subscription service Apple TV + was working well as more people watched content while locked, and that people turned to iPad and Mac, the company’s largest computers, in increasing numbers.
“It is clearly helping the iPad and the Mac, and for that reason … we imagine that both will improve performance year after year in this current quarter,” Cook told CNBC. “If you look at TV + as an example, we’ve seen a significant increase in the number of people who are watching content, as well as the interaction with the content.”
Apple’s cash accumulation is now $ 192.8 billion, down from $ 207.1 billion at the end of the previous quarter.
Apple stores worldwide, except in China and one location in Korea, are closed until further notice. But the company said sales at its online store, combined with its retail stores, hit a record in March, and Tim Cook told CNBC “growth was off the charts” online. Cook also said the company plans to reopen its retail stores with “a very small number of people in the store.”
Cook also noted that Apple was able to launch new products, including new iPad Pro and MacBook Air models, during a quarter in which many of Apple’s employees at its California headquarters began working from home amid the coronavirus pandemic. .
This story is unfolding. Update for the latest updates. CNBC’s Josh Lipton contributed to this story.
