Apple Q2 Sales Beat Wall Street Estimates: CEO Tim Cook Calls It A ‘Unique’ Quarter,’ Not In A Good Way

Apple CEO Tim Cook
Apple CEO Tim Cook Bebeto Matthews/AP/REX/Shutterstock

Apple reported earnings $58.3 billion in revenue last quarter and $2.55 earnings per share, beating expectations on both fronts. Sales were up 1% and profit up 4% from the year earlier quarter.

The stock, which closed higher Thursday, popped in after hours trading on the earnings before retreating.

“It was a very unique quarter. I have never had anything quite like this. I hope to never have it again,” CEO Tim Cook said in an interview on CNBC.

Wall Street’s revenue consensus was about $54.6 billion but the estimates varied dramatically given the uncertainties. Consensus profit forecast was $2.27 a share, but again, the range was wide. Net income of $11,25 billion versus $11.5 billion.

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” said Cook in a statement.

The company recently introduced a cheaper version of its phone, the iPhone SE in April. During the quarter, it came out with a new iPad Pro model and a refreshed MacBook Air.

Executives will take questions for analysts on a call at 5 pm ET with more details on the pandemic’s impact and outlook on iPhone production, Apple TV+ and the 5G rollout, among other things.

Services revenue, which includes streaming service AppleTV+, hit a record $13.3 billion, up 16%, from $11.4 billion a year ago. Wearbles also rose. IPhone sales dipped 7% to $29 billion. Sales of Macs and iPads also dipped.

Apple TV+ debuted last November with eight original show and has been growing its content offering steadily but been a rather quiet entrant to the streaming warns. Earlier Thursday the company released three new ads for the service on YouTube.

After a strong fiscal first quarter Apple was the first major U.S. company to warn a month after, in late February, that it had to scrap financial guidance given supply chain issues in China. Other companies soon joined the chorus. Its stores remain shuttered save for ones that have reopened in China and one location in Korea.

Sales in China eased to $9.5 billion from $10.2 billion.

In a unusal move in the current environment – where companies are trying to conserve cash and look conservative – Apple announced both an increase in its dividend and a $50 billion increase in its share repurchase program.

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