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Apple smashes Q3 revenue expectations despite pandemic

Lucas Matney
·2-min read
Tim Cook, chief executive officer of Apple Inc., speaks during the Apple Worldwide Developers Conference seen on a laptop computer in Arlington, Virginia, U.S., on Monday, June 22, 2020. Apple will walk into its annual development conference facing one of the biggest backlashes from its giant community of creators since the App Store started almost 12 years ago. Photographer: Andrew Harrer/Bloomberg via Getty Images
Tim Cook, chief executive officer of Apple Inc., speaks during the Apple Worldwide Developers Conference seen on a laptop computer in Arlington, Virginia, U.S., on Monday, June 22, 2020. Apple will walk into its annual development conference facing one of the biggest backlashes from its giant community of creators since the App Store started almost 12 years ago. Photographer: Andrew Harrer/Bloomberg via Getty Images

COVID-19 isn't keeping Apple down.

The company smashed Wall Street expectations, delivering Q3 revenue of $59.69 billion, beating down the $52.25 billion analysts had expected. The company also announced earnings per share of $2.58 compared to Wall Street expectation of $2.04 EPS.

Despite the coronavirus pandemic, Apple's overall revenue was up nearly 11% year-over-year, reflecting the boom that broader tech stocks have seen as of late. The company's year-over-year revenues were up in every geography it measures and every product category it measures.

Apple's stock was up as much as 5% in after-hours trading as investors reacted to the earnings release.

“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 CEO Tim Cook in a statement accompanying the release. “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."

Alongside the news, Apple detailed that they would be doing a four-for-one stock split, indicating that investors who already own one share of Apple stock will receive three more. This doesn't materially change much for investors, but does ensure that single shares of Apple stock will be more affordable when the stock split is carried out toward the end of August. This isn't a first for the company; they've done it several times, most recently back in 2014.

This was Apple's first quarterly earnings report that fully felt the damage of COVID-19 and worldwide changes to in-person retail amid wide shelter-in-place mandates by governments. These seismic shifts have clearly not damaged Apple's stock, which hit an all-time high this month and already appears on its way toward breaking through a $2 trillion market cap.

The company had its first fully remote developer conference earlier this summer, where they debuted the next wave of their device operating systems. The company is expected to release a flurry of new mobile devices in upcoming months, as per their historic device release schedule.

Yesterday, CEO Tim Cook was Zoom-summoned to an antitrust hearing in Washington, D.C. where he was questioned about anti-competitive practices alongside other Big Tech CEOs.