Apple beats earnings and revenue expectations, cites strong iPhone 11 sales

Apple stock

Shares of Apple (NASDAQ: AAPL) published earnings for its fiscal 2020 first-quarter after markets closed on Tuesday, reporting revenue of $91.8 billion, an increase of 9% from revenue of $84.3 billion in the year-ago quarter.

Its trio of iPhone 11 models released a mere four months ago powered much of the company’s revenue growth in the quarter. International sales accounted for 61% of the quarter’s revenue.

Net income came in at $22.24 billion, or $4.99 per share, up from net income of $19.97 billion, or $4.18 per share in the same period last year. Analysts expected the iPhone maker to report quarterly earnings of $4.55 a share on $88.50 billion revenue, according to data compiled Refinitiv.

The earnings were also ahead of Apple’s own guidance, which it had provided during its last earnings call. Apple had set its Q1 2020 revenue outlook at between $85.5 billion and $89.5 billion.

In the earnings press release, Apple said it pulled in revenue of $56 billion from the iPhone, $6 billion from the iPad, and $7.2 billion from the Mac. Apple also generated revenue of $12.7 billion from its services segment and an additional $10 billion from wearables, home, and accessories.

For its fiscal 2020 second quarter, the company is predicting revenue between $63 billion to $67 billion versus analyst estimates of $62.45 billion.

At the time of writing, Apple shares were up $8.86, or 2.79% to $326.55 apiece in Tuesday’s after-hours trading session. The stock has gained nearly 10% so far this year.

Apple CEO Comments

“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” Apple CEO Tim Cook said in the earnings statement.

“During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board,” Cook added.

Apple Company Profile

Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple’s total revenue.

In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card, and Apple Pay, among others. Apple’s products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services.

Apple’s products are distributed online as well as through company-owned stores and third-party retailers. The company generates about 40% of its revenue from the Americas, with the remainder earned internationally. – Warrior Trading News