Apple Stock Rebounds on Strong Results
Apple stock price rallied more than 6% after topping analysts’ expectations for the third-quarter results. The market analysts and traders have applauded Apple’s execution and commitment during the most challenging times.
Its third-quarter revenue of $59 billion exceeded analysts’ consensus estimate by $7 billion. The revenue growth is driven by a stronger than expected iPhone, Wearables, and Services revenues.
Its iPhone revenue of $26.4 billion has beaten the consensus estimate of $22.20 billion while iPad revenue of $6.6 billion jumped sharply compared to consensus for $4.8 billion. Its Mac revenue came in around $7.1 billion, up from consensus for $6.03 billion. On top, the world’s largest tech company has generated Services revenue of $13.2 billion and Wearables revenue of $6.5 billion.
“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple’s CEO. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation.”
In addition to strong revenue performance, Apple has generated third-quarter earnings per share growth of 18% year over year.
It has also sustained a quarterly dividend of $0.82 per share, thanks to its strong cash generation potential. Its June quarter operating cash flow came in at a record level of $16.3 billion.
“The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories,” said Luca Maestri, Apple’s CFO.
The company says its 5G supported iPhone 11 launch will delay for few weeks only. Apple stock price rebounded on record-breaking June quarter performance despite lockdowns and slowing demand due to pandemic.
The shares of the largest tech company are currently hovering slightly below the $400 level.
The bulls are expecting Apple stock to trade around $450 during the second half of the year.