Apple's Stock Split May Not Even Be The Best Part of Its Earnings Report

Technology

Published: July 30, 2020 4:48 pm

Apple Inc. (NASDAQ: AAPL) released its most recent quarterly results after markets closed Thursday. The iPhone giant reported $2.58 in earnings per share (EPS) and $59.7 billion in revenue, compared with consensus estimates that called for $2.04 in EPS and $52.25 billion in revenue. The fiscal third quarter from last year had $2.18 in EPS and $53.81 billion in revenue.

One thing to note is that International sales accounted for 60% 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 August 13, to shareholders of record as of the close of business on August 10.

Perhaps the biggest news of the report was that Apple’s board approved a 4-for-1 stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, with receive three additional shares for every share held on the record date.

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

iPhone pulled in revenues of $26.42 billion, an increase of 1.7% year over year.
Mac revenues increased by 21.6% to $7.08 billion.
iPad revenues increased 31.0% to $6.58 billion.
Services revenues increased by 14.8% to $13.16 billion.
Other Products revenues increased by 16.7% to $6.45 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 $2.78 in EPS on $61.54 billion in revenue for the coming quarter.

Shares of Apple closed Thursday at $384.76, with a 52-week range of $192.58 to $399.82. The consensus analyst price target is $371.96. Following the announcement, the stock was up 5% at $403.04 in the after-hours session.