Technology

Does Apple Deserve More Credit For Q2 Earnings?

Apple Inc. (NASDAQ: AAPL) released its most recent quarterly results after markets closed Thursday. The iPhone giant reported $2.55 in earnings per share (EPS) and $58.3 billion in revenue, compared with consensus estimates that called for $2.26 in EPS and $54.54 billion in revenue. The fiscal second quarter from last year had $2.46 in EPS and $58.02 billion in revenue.

One thing to note is that International sales accounted for 62% of the quarter’s revenue.

Apple’s board of directors declared a cash dividend of $0.82 per share of common stock. The dividend is payable on May 14, 2020, to shareholders of record as of the close of business on May 11. The board of directors has also authorized an increase of $50 billion to the existing share repurchase program.

For the quarter, the firm reported its product sales as follows:

  • iPhone pulled in revenues of $28.96 billion, a decrease of 6.7% year over year.
  • Mac revenues decreased by 2.9% to $5.35 billion.
  • iPad revenues decreased 10.3% to $4.37 billion.
  • Services revenues increased by 16.6% to $13.35 billion.
  • Other Products revenues increased by 22.5% to $6.28 billion.

The company did not give guidance for the quarter noting the lack of visibility and uncertainty in the short term. The consensus estimates call for $2.07 in EPS on $51.54 billion in revenue for the coming quarter.

Tim Cook, Apple’s CEO, commented:

Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables. In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.

Shares of Apple closed Thursday at $293.80, with a 52-week range of $170.27 to $327.85. The consensus analyst price target is $303.15. Following the announcement, the stock was up 1% at $297.75 in the after-hours session.