Apple shares jump on record results

Apple has published its financial results for its fiscal 2020 first-quarter ending 28 December, with the company largely exceeding shareholder expectations.

The company posted quarterly revenue of $91.8 billion, an increase of 9% from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $4.99, up 19%, also an all-time record.

“We are thrilled to report Apple’s highest quarterly revenue ever, fuelled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,”said Tim Cook, Apple’s CEO.

“During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers – and a great driver of our growth across the board.”

Apple provided the following guidance for its fiscal 2020 second quarter:
  • Revenue between $63.0 billion and $67.0 billion;
  • Gross margin between 38% and 39%;
  • Operating expenses between $9.6 billion and $9.7 billion;
  • Other income/(expense) of $250 million;
  • Tax rate of approximately 16.5%.

Stocks rally

The group’s first-quarter results spurred optimism among analysts that demand for the tech giant’s iPhones will endure, especially as the company is said to be preparing to launch a new low-cost model and a 5G-enabled device later this year.

Analysts were particularly positive on growth in China, as well as the outlook for the second quarter, even as the performance of the services division disappointed.

Analysts at Cowen also cautioned of the potential impact of the coronavirus outbreak on-demand in the all-important Asian region.

The shares rose 2.2% in the U.S. pre-market and are poised to open at a record high. Apple stock has gained this year as analysts have become increasingly positive on the potential boost from 5G iPhone upgrades.

With further reporting from Bloomberg.

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Apple shares jump on record results