Apple Reports Second Quarter Financial Results

Tech giant Apple revealed its second quarter financial results on Thursday, revealing flat revenue and uncertainty about the future.

The company has not offered guidance looking ahead due to coronavirus uncertainty.

Apple shares were down more than 2% during extended trading on Thursday after Wall Street digested the results.
For the second quarter, the company reported a slight increase in second-quarter revenue to $58.3 billion, during a period in which supply and demand for Apple’s products was negatively affected by the Covid-19 pandemic.

Earnings per share adjusted was $2.55. Revenue came in at $58.3 billion. iPhone revenue was $28.96 billion, services revenue was $13.34 billion, Mac revenue was $5.35 billion, iPad revenue was $4.36 billion, and wearables, home, and accessories revenue was $10.01 billion. Gross margin was 38.4%.

Analysts surveyed by Refinitiv had expected $2.26 in adjusted earnings per share on $54.54 billion in revenue for the fiscal second quarter, with a 38.4% gross margin

“Amid the most challenging global environment in which we’ve ever operated our business we’re proud to say that Apple grew during the quarter,” Apple CEO Tim Cook said during a call with analysts.

Apple also said that it will continue to buy back its stock amid the pandemic. The company has authorized an increase of $50 billion in the company’s share repurchase program, in addition to a dividend of $0.82 per share. In Apple’s fiscal 2019, it spent $67.1 billion repurchasing shares and $14.1 billion on dividends.

“There was a significant, very steep fall-off in February. That began to recover some in March, and we’ve seen further recovery in April. So, it leaves us room for optimism,” Cook said to CNBC’s Josh Lipton.

“We have great confidence in the long-term of our business. In the short-term, it’s hard to see out the windshield to know what the next 60 days look like, and so we’re not giving guidance because of that lack of visibility and uncertainty,” Cook said. “It was a very unique quarter. I’ve never had anything quite like this. I hope to never have it again, but I’m incredibly proud of the company and what was achieved during that period of time.”

Cook also said that the company plans to reopen its retail stores with a “much reduced number of people in the store.”

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.