Apple Inc. (AAPL) – Get the report shares rose on an all-time high Friday, firmly trading the $ 400 value for the first time as the tech giant posted third-quarter declining profits in the face of store closures caused by the pandemic and supply chain disruptions.
Apple said earnings for the three months ended June, the group’s third fiscal quarter, rose 25.9% from the same period last year to $ 2.58 a share, well ahead of $ 2.05 a share in the Road Consensus forecast. . The group’s revenue grew 13.4% in a $ 59.7 billion Road Crash, Apple said, with profits in every geographic region and across its product line.
IPhone revenue rose 2% from a year earlier to a $ 26.4 billion forecast, despite COVID-19 sunglasses, thanks in part to a strong debut for the $ 399 iPhone SE, which launched earlier this year. year. IPad and iMac sales, meanwhile, rose 22% and 31% respectively as home-enabled PC purchases. Revenue from services was worth $ 13.2 billion, just shy of Apple’s latest record and 15% higher than last year.
“We’re very pleased with the way we’ve done on the iPhone. It was better than we thought mainly because May and June were much better. If you look at the iPhone as a whole the things that make me most optimistic are the size of the active base. installed, “Apple CEO Tim Cook told investors in a conference call late Thursday.
“The installed base is growing and the new customer numbers are still very high and so, for me it works well for the future,” he added. “Clearly it is clear, as we have shown, there is an amount of work from home learning and distance that positively affects Mac and iPad outcomes.”
“They probably affect the holding of things and the iPhone, the other direction. And – but on the Mac and iPad, these are productivity tools that people are using to stay busy with their work or stay engaged with their work. school, “Cook said. “And we believe we will have a strong comeback in the school season. Sitting here today, it will certainly look like that.”
Apple shares were up 6.2% higher in early trading on Friday to change hands at $ 408.35 each, a move that would extend its share gain to around 40% and value Cupertino, the company based in California with about $ 1.78 trillion.
The impact of the Dow Jones Industrial Average stocks, however, is set to fade next month after the group announced a four-to-one stock split that will take effect on Aug. 31. A 7% to $ 410 per share adds about 185 points to the Dow. A similar earnings of $ 110 per share would only add 46 points to the weighted average price.
Apple declined to offer an immediate profit forecast, “given the worldwide uncertainty” and the continuing impact of COVID-19, but noted that it expects to see continued profit for the iPhone, despite possible delays. “a few weeks” for its iPhone 12 launch in September.
“Management predicts continued double-digit growth for all hardware products except iPhone during Q4 / F20 with iPhones facing a difficult growth comparable to new product releases coming in a few weeks later or now in the December quarter” , said Canaccord Genuity analyst T. Michael Walkley, who holds the $ 460 purchase price estimate.
“Starting in Q1 / F21, we believe Apple is well positioned to take advantage of the 5G update cycle and anticipate strong iPhone growth to contribute to overall strong growth trends as 5G and Apple smartphones continue to increase its installed base and services with higher revenue margins, “he added. “Apple’s ecosystem approach, including an installed base that exceeds 1.6 billion devices globally, must continue to generate revenue from solid services, and we expect higher-margin utility revenue growth to outpace growth. total of the company. ”