Apple Q3 Results Trounce Street View; Shares Up 5%

(RTTNews) - Shares of Apple Inc. (AAPL) jumped 5% on extended trading hours Thursday after the tech giant reported a third-quarter profit and revenues that trounced Wall Street estimates, driven by double-digit growth in both Products and Services and growth in each of geographic segments despite negative impacts of coronavirus pandemic. The company also announced plans for a 4-1 stock split.

Apple's third-quarter profit rose to $11.25 billion or $2.58 per share from $10.04 billion or $2.18 per share last year. On average, 31 analysts polled by Thomson Reuters expected earnings of $2.04 per share for the quarter.

Apple's revenues increased 11% to $59.69 billion from last year's $53.81 billion. Analysts had a consensus revenues prediction of $52.25 billion.

"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 Tim Cook, Apple's CEO. "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."

Apple's revenues from iPhones rose to $26.42 billion from $25.99 billion last year. Mac sales increased to $7.08 billion from $5.82 billion last year, and iPad sales gained to $6.58 billion from $5.02 billion last year. Wearables, Home and Accessories segment improved to $6.45 billion from $5.53 billion last year, while services revenues increased to $13.16 billion from $11.46 billion a year ago.

Apple's Board of Directors has declared a cash dividend of $0.82 per share, payable on August 13, 2020 to shareholders as of the close August 10, 2020.

The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.

AAPL closed Thursday's trading at $384.76, up $4.60 or 1.21%, on the Nasdaq. The stock further gained $19.33 or 5.02%, in the after-hours trading.