Apple’s Fiscal Third Quarter Earnings, Revenue Soundly Beats Analysts’ Expectations, Sets Stock Split

Apple (AAPL) posted earnings of $2.58 per diluted share on revenue of $59.7 billion for its fiscal third quarter.

Analysts were expecting earnings of $2.08 per diluted share on revenues of $52.25 billion.

The company noted that earnings were up 18% from the year-ago quarter while revenues jumped by 11%. International sales represented roughly 60% of the quarter’s revenue.

“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 Apple CEO Tim Cook. “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.”

Luca Maestri, Apple’s chief financial officer added: “Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times. 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. We grew [earnings per share] by 18% and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics.”

Apple’s board of directors also approved a four-for-one stock split in order to make the stock “more accessible to a broader base of investors.”

Each Apple shareholder will receive three additional shares for every share held as of Aug. 24, 2020.

As Apple shares currently trade at about $380, investors would be able to buy shares at about $100 each, depending on where the stock trades at the end of August.