Apple Revenue Soars 54% In Q2 On Favorable Covid Comparisons; Profit Smashes Wall Street Forecasts

Apple posted a 54% gain in total revenue in its fiscal second quarter, reflecting the tech giant’s bounceback from the worst of Covid-19, which hit results in the same period in 2020.

Revenue for the quarter ending March 27 reached $89.6 billion, with international accounting for 67% of the total. Much of the growth came in the company’s Products division thanks to a new line of iPhones and other devices. Total Product revenue reached $72.7 billion, up 62% from a shade less than $50 billion a year ago.

Services revenue, which includes iCloud, Apple Music, Apple TV and other operations, reported more modest growth, climbing 26% to $16.9 billion.

Wall Street analysts had expected revenue of $77.35 billion, and Apple’s earnings also handily exceeded their expectations. Diluted earnings per share of $1.40 more than doubled the 64 cents a year ago and demolished the Street forecast for 99 cents.

“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem
to feel about better days ahead for all of us,” CEO Tim Cook said in the company’s earnings release.

Apple stock, which split 4-for-1 in 2020 and the company closed the year with a market value of more than $2 trillion. Shares have gained just a small amount thus far in 2021, and their movement has been fairly volatile. Concerns about the iPhone manufacturing supply chain and the return to retail amid Covid-19 have continued to weigh on investors. After the results hit the wire after the close of trading, shares gained 3% after hours.

Along with the earnings, Apple said its board of directors declared a cash dividend of 22 cents a share, up 7%. The dividend is payable on May 13 to shareholders of record as of the close of business on May 10.

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