Apple reports $58.3B revenue in Q2, shows growth despite COVID-19

Posted:
in AAPL Investors edited April 2020
Following a turbulent few months due to the COVID-19 pandemic, Apple has reported revenue earnings of $58.3 billion for the second quarter of 2020, beating Wall Street estimates by a large margin.

Revenue Q2 2020


Overall earnings for the company are up 1% from Q2 2019, a quarter in which Apple reported $58 billion in revenue. Apple's revenue of $58.3 billion puts it below the original forecast range of $63 billion to $67 billion issued in January, though the company quickly elected to warn investors of a probable revenue miss one month later, driven by the impact of the coronavirus on the business.

International earnings accounting for 62% of the quarter's revenue, Apple said.

"Despite COVID-19's unprecedented global impact, we're proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables," Apple CEO Tim Cook said in a prepared statement. "In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we've sent to medical professionals around the world, to the millions we've donated to organizations like Global Citizen and America's Food Fund."

Operating expenses for the quarter were $9.5 billion, below the $9.6 billion to $9.7 billion prediction. The gross margin for the period reached 38.4%, in between the January forecast of 38% to 39%. Profits hit $11.3 billion during the quarter.

Revenue and Gross Margin Q2 2020


Before the results were released, the Wall Street consensus estimated Apple's revenue at around $54.5 billion, with an earnings per share of $2.26. Apple's earnings per share for the quarter is in reality $2.55.

The iPhone brought in $28.96 billion in the quarter, a year-on-year decrease from $31 billion. Mac revenue is at $5.4 billion, down from $5.5 billion last year, while iPad revenue of $4.4 billion is down from $4.9 billion one year ago. The "Wearables, Home, and Accessories" category reached $6.3 billion, up from the $5.1 billion recorded in Q1 2019.

Services continued to be a major source of highly reliable growth for Apple, hitting $13.4 billion.

The company's board approved a cash dividend of $0.82 per share of common stock, an increase of 6%, that is payable on May 14, 2020 to shareholders of record at the close of business on May 11, 2020. Apple is also increasing its share repurchase program by $50 billion.

Apple did not provide guidance for its third fiscal quarter.
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Comments

  • Reply 1 of 33
    yojimbo007yojimbo007 Posts: 1,165member
    Major hats off to Tim and Team
    mrmacgeekSpamSandwichgregoriusmstevenozmdriftmeyerchasmwatto_cobra
  • Reply 2 of 33
    They are Doomed (LOL)
    edited April 2020 mrmacgeekbaconstangwatto_cobra
  • Reply 3 of 33
    avon b7avon b7 Posts: 7,831member
    7% drop in iPhone revenue is excellent, all things considered. 
    mrmacgeekgregoriusm
  • Reply 4 of 33
    apple ][apple ][ Posts: 9,233member
    Great earnings! Dividend increased too by 6%.

    All of the dirty bears are crying now, lol. Screw them.

    And screw the virus too! Nothing can hold back Apple, not even a lousy virus!
    edited April 2020 mrmacgeekgregoriusmBeatspscooter63watto_cobra
  • Reply 5 of 33
    Major hats off to Tim and Team
    ^^^ this

    SpamSandwichgregoriusmchasmwatto_cobra
  • Reply 6 of 33
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    mrmacgeekSpamSandwichradarthekatwatto_cobra
  • Reply 7 of 33
    That’s a lot better than I expected.
    watto_cobra
  • Reply 8 of 33
    dewmedewme Posts: 5,492member
    Major hats off to Tim and Team
    ^^^ this

    Yes indeed. Apple's diversification of their products & services portfolio under Tim Cook has bought them a degree of resiliency that would not have been imaginable just a few years ago.
    gregoriusmtmayroundaboutnowpscooter63mdriftmeyerradarthekatchasmwatto_cobra
  • Reply 9 of 33
    apple ][apple ][ Posts: 9,233member
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    That's happened before with AAPL too. They deliver better than expected results and the price drops slightly.

    I don't worry or pay attention to that stuff at all.

    Earnings were great, way better than anybody imagined.

    What we don't have control over is any short term price action in the market. The overall market was down today, so that might have something to do with it. Either way, it doesn't matter at all. AAPL will soon be in the 300's again I think.
    watto_cobra
  • Reply 10 of 33
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    It's the lack of guidance that makes investors uneasy. People are looking for a light at the end of the tunnel and didn't get one. 
    edited April 2020
  • Reply 11 of 33
    SpamSandwichSpamSandwich Posts: 33,407member
    apple ][ said:
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    That's happened before with AAPL too. They deliver better than expected results and the price drops slightly.

    I don't worry or pay attention to that stuff at all.

    Earnings were great, way better than anybody imagined.

    What we don't have control over is any short term price action in the market. The overall market was down today, so that might have something to do with it. Either way, it doesn't matter at all. AAPL will soon be in the 300's again I think.
    Post-COVID-19 they’ll skyrocket.
    Beatsradarthekatwatto_cobra
  • Reply 12 of 33
    apple ][apple ][ Posts: 9,233member
    Apple has also raised its share buy back program by 50 Billion bucks! And they raised the dividend too!

    Not too many companies that can afford to do that right now!  :)
    radarthekatwatto_cobra
  • Reply 13 of 33
    apple ][apple ][ Posts: 9,233member
    It's the lack of guidance that makes investors uneasy. People are looking for a light at the end of the tunnel and didn't get one. 
    Tim Cook said there is too much uncertainty to forecast the next 60 days and that makes perfect sense, taking into account the current situation. It would be irresponsible to release guidance given the current situation.

    Real investors don't care about the next 60 days, that's short term. Investors care about the long term. Day traders and other short term traders care about the day to day. Everybody else can take a nap.
    edited April 2020 pscooter63radarthekatwatto_cobra
  • Reply 14 of 33
    iOS_Guy80iOS_Guy80 Posts: 849member
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    It's the lack of guidance that makes investors uneasy. People are looking for a light at the end of the tunnel and didn't get one. 

    Light at the end of the tunnel is a vaccine for the virus.
    fastasleepbaconstangwatto_cobra
  • Reply 15 of 33
    iOS_Guy80iOS_Guy80 Posts: 849member
    apple ][ said:
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    That's happened before with AAPL too. They deliver better than expected results and the price drops slightly.

    I don't worry or pay attention to that stuff at all.

    Earnings were great, way better than anybody imagined.

    What we don't have control over is any short term price action in the market. The overall market was down today, so that might have something to do with it. Either way, it doesn't matter at all. AAPL will soon be in the 300's again I think.
    The cup is half full not empty.
    lkruppwatto_cobra
  • Reply 16 of 33
    apple ][apple ][ Posts: 9,233member
    Post-COVID-19 they’ll skyrocket.
    Indeed, Apple was at all time highs before the virus crap came. They'll be back to new all time highs soon enough.
    watto_cobra
  • Reply 17 of 33
    lkrupplkrupp Posts: 10,557member
    They are Doomed (LOL)
    Jesus Christ said the poor will always be with us. As for Apple the doomsayers will always be with us. We should pity them and offer them succor. 
    watto_cobra
  • Reply 18 of 33
    apple ][apple ][ Posts: 9,233member
    lkrupp said:
    They are Doomed (LOL)
    Jesus Christ said the poor will always be with us. As for Apple the doomsayers will always be with us. We should pity them and offer them succor. 
    I don't do pity that well, I'm not Jesus after all, so I don't have to live up to any ideals.

    I despise the doomsayers and I will continue to mock them and point out their utter cluelessness. They've been wrong for decades and they will continue to be wrong until their last breath. I don't think highly of dishonest people.

    I do agree that they will always be with us though.
    lkruppwatto_cobra
  • Reply 19 of 33
    iOS_Guy80 said:
    How wacky: the price of AAPL went up 2% late in the day before the announcement and dropped 2% after the good news.  Oh well, must be that old "buy on the rumor, sell on the news" thing.
    It's the lack of guidance that makes investors uneasy. People are looking for a light at the end of the tunnel and didn't get one. 

    Light at the end of the tunnel is a vaccine for the virus.
    I mean sure but not what I am talking about. Investors are looking for stability and hoping to see that in guidance. The lack of guidance is a lack of stability. 
  • Reply 20 of 33
    BeatsBeats Posts: 3,073member
    "beating Wall Street estimates by a large margin."

    Warms my heart.
    lkrupp
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