Hot topics | Coronavirus pandemic

Apple's Results In Q3 2020 Exceeded Expectations; The Company Will Hold A Split

Apple's Results In Q3 2020 Exceeded Expectations; The Company Will Hold A Split

American Apple Inc at the end of the third quarter of the fiscal year 2020 showed financial indicators better than analysts' forecasts and announced its intention to split shares "4 to 1."

According to the company's press release, its net income for the quarter that ended June 27 increased by 12% to $11.253 billion, or $2.58 per share, compared with $10.044 billion, or $2.18 per share, received for the comparable period last year.

Revenue increased 11% to $ 59.685 billion from $53.809 billion a year earlier. International sales accounted for 60% of revenue.

Analysts polled by FactSet on average expected earnings of $2.05 per share on revenue of $52.24 billion.

Both of these indicators were a record for the third financial quarter, the report notes.

"Apple's record June quarter was driven by double-digit growth in both its products and services and growth in each of our geographic regions," Chief Executive Tim Cook said. "In these difficult times, these indicators demonstrate the important role our products play in our customers' lives and Apple's continuous innovation."

Apple's Board of Directors announced a dividend of 82 cents per share. They will be paid on August 13 to current shareholders at the time of closing the register on August 10.

Also, the Board of Directors approved a "4 to 1" split, which will make the company's shares more accessible to a wide range of investors, the report said. Each Apple shareholder will receive three additional shares for each paper that they own on the reporting date when the registration closes on August 24. The split-adjusted auction will start on August 31.

Apple services (App Store, Apple Music, Apple Pay, and iCloud) in the past quarter brought the company revenue of $13.156 billion, which is 14.9% more than a year earlier.

Revenue from iPhone sales increased by 1.7% to $26.418 billion, Mac computers - by 21.6% to $7.079 billion, iPads - by 31% to $6.582 billion. Sales of Wearables and accessories increased by 16.7% to $6.45 billion.

Revenue in China (including Hong Kong and Taiwan) in the third quarter increased by 1.9% to $9.329 billion in the Americas - by 7.8% to $27.018 billion. In Europe, it soared by 44% to $17.173 billion, in Japan-by 21.7% to $4.966 billion.

The company again did not give a sales forecast for the current year due to economic uncertainty caused by the COVID-19 pandemic.

Apple's stock price rose 6.4% in additional trading on Thursday. Over the past three months, the company's market value has soared by more than 30% and now exceeds $350 billion, while the Dow Jones Industrial Average has added just 8%.