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Apple (AAPL-US) announced on Thursday after the market (30) after the financial report for the second quarter of fiscal year 2020, earnings and net earnings per share (EPS) exceeded Wall Street expectations, but Wall Street Research found Apple’s third-quarter earnings outlook to be poor, and its subsequent hours The stock price fell 2%.
Key data from Apple’s second quarter financial year financial report:
- Adjusted net income per share: US $ 2.55, better than expected US $ 2.26
- Revenue: $ 58.3 billion, better than expected $ 54.54 billion
- IPhone revenue: $ 28.96 billion, better than expected $ 28.4 billion
- Service revenue: $ 13.34 billion, better than expected $ 12.9 billion
- Mac revenue: $ 5.35 billion
- IPad revenue: $ 4.36 billion
- Wearable, household and accessories income: $ 100.1
- Gross margin: 38.4%
- There are no financial estimates for the third quarter of fiscal year 2020.
Apple Chief Executive Cook said: “Despite the unprecedented global impact of the new coronary pneumonia, we are proud to announce that Apple has achieved revenue growth this quarter driven by record revenue from wearable devices and services.”
The focus of Apple’s earnings conference call is as follows:
Focus 1: The epidemic impacts declining iPhone sales Service and rescue revenue
Due to the impact of the New Crown epidemic, Apple’s iPhone Q2 sales fell 7%, and iPhone revenue fell to $ 28.96 billion from $ 31 billion in the same period last year.
Growth in service revenue made up for this gap, including growth in service revenue for iCloud, Apple Music and other subscriptions that increased 16% to $ 13.34 billion.
Apple Chief Financial Officer Mestri (Luca Maestri) said that compared to the same period last year, the iPhone’s performance in the third quarter will be worse than the second quarter. For the iPhone and wearable division, we expect third-quarter revenue to be worse than second-quarter revenue, but on iPad and Mac, we expect third-quarter revenue to improve from the same period last year.
Focus 2: Apple wearables are among Fortune 140 companies
In the quarter where the epidemic was so difficult, Apple’s wearables division still performed well. In the second quarter, the division’s revenue reached $ 6.3 billion, up from $ 5.1 billion in the same period last year, better than Wall Street’s expectations, and outpaced Mac ($ 5.35 billion). ). ) And iPad revenue ($ 4.36 billion).
Portable divisions like AirPods, Apple Watch, Beats, Apple TV, and HomePod have grown to the scale of Fortune 140 companies.
During the conference call, on whether Apple plans to customize its electrocardiogram (ECG technology) to help detect or control coronavirus symptoms, Cook revealed that Apple is working on Apple Watch improvements related to the current crisis.
Cook said this is a great opportunity for the company and a way to help many people, and Apple will continue to do so.
Focus 3: Greater China demand has basically recovered
The epidemic impacted Apple’s supply chain and sales. Apple’s sales in Greater China were $ 9.46 billion.
Cook said: “When the blockade took effect in late January, we saw a sharp drop in demand in February, a surge in demand in March, and an even better improvement in April. Chinese sales are moving in the right direction. So this gives us room for optimism. “
Focus four: Apple did not provide financial evidence, because it is impossible to predict the future
Cook said that due to the uncertainty caused by the new crown epidemic, it is not possible to provide financial estimates for the third quarter of fiscal year 2020.
Cook explained: “We are full of confidence in our long-term business. In the short term, it is difficult to know what will happen in the next 60 days, so due to lack of visibility and uncertainty, we have not provided financial estimates.
Cook frankly said, “The question now is when the store can reopen, cancel the asylum order on-site, and employees return to the store to work and attract consumers? We can’t claim to predict, but frankly, we can’t predict the future.” .
Focus five: spend another $ 50 billion to expand treasury stock
In fiscal year 2019, Apple spent $ 67.1 billion to buy back shares. Despite the New Coronary Pneumonia (COVID-19) outbreak, many companies have suspended the implementation of Treasury stocks to save capital, but Apple is still actively expanding Treasury stocks as expected.
On Thursday, Apple announced that it will spend another $ 50 billion to expand its treasury stock plan. Additionally, Apple increased its quarterly dividend from $ 0.77 per share to $ 0.82. Current cash reserves amount to $ 192.8 billion.
Focus six: Did the flagship 5G mobile phone launch as scheduled this year?
Cook refused to answer this. Cook said Apple would not comment on future products, but mentioned that Apple’s supply chain was running at full speed in late March.
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