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Apple's fiscal 2nd-quarter revenue surpassed Wall Street's expectations (AAPL)

Tim Cook
  • Apple reported revenue of $58.3 billion for its fiscal second quarter, surpassing Wall Street's muted expectations of $54.24 billion. 
  • Apple said in February that it did not expect to meet its second quarter revenue guidance because of the coronavirus.
  • Analysts will likely ask about how the pandemic has impacted Apple's reported plans to release a 5G iPhone in the fall. 
  • Visit Business Insider's homepage for more stories.
Apple reported fiscal second-quarter revenue of $58.3 billion, surpassing Wall Street's muted expectations. It's the first concrete evidence of how Apple has performed financially since the coronavirus pandemic upended the economy.
Here's a look at the key numbers compared to what analysts were expecting and how Apple performed in the year-ago quarter:
  • Q2 revenue: $58.3 billion. Analysts estimate $54.24 billion; Year-ago quarter: $58 billion
  • Q2 EPS: $2.55. Analysts estimate $2.25; Year-ago quarter: $2.46
  • Q2 iPhone revenue: $29 billion. Year-ago quarter: $31.1 billion
  • Q2 Services revenue: $13.3 billion; Year-ago quarter: $11.5 billion
  • Q2 Wearables, home, and accessories revenue: $6.3 billion; Year-ago quarter: $5.1 billion
Apple's fiscal second-quarter revenue also increased by 1% compared to the year-ago quarter, the company said.
The company's services and wearables division continued to be a bright spot for Apple, as they have been in other recent quarters. Apple's services division, which includes offerings like Apple TV Plus, Apple Music, and Apple Care, reached an all-time record. Its wearables division also reached a quarterly record.
Apple may have beaten Wall Street's expectations, but estimates were low to begin as the coronavirus pandemic has shaken Apple's business in recent months. Apple said in February that it did not expect to meet its initial second-quarter revenue goal of between $63 billion and $67 billion because of weakened demand and supply constraints stemming from the pandemic.
Some analysts expected to see strong performance from Apple's services division considering people are spending more time at home. As such, consumers may be more willing to try Apple TV Plus.
"A lot of those revenues should be a little stickier, since some of them are subscription-based and shouldn't be as discretionary, like a phone purchase for instance," Robert Muller, enterprise hardware analyst for RBC Capital Markets, said to Business Insider.
Analysts will probably be looking for answers about how the virus will impact Apple's reported plans to launch a 5G iPhone in the fall, as well as insight about how iPhone demand has been faring in general throughout the pandemic. Apple also just released the $400 iPhone SE on April 24, so analysts will likely be looking for comments about how reception has been so far heading into the June quarter.
This story is developing. Please refresh for the latest updates. 
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* This article was originally published here Press Release Distribution

Source - https://www.businessinsider.com/?hprecirc-bullet

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