Apple Q2 Profit, Revenues Beat Street Estimates

(RTTNews) - Tech giant Apple Inc. (AAPL), Thursday reported a second-quarter profit and revenues that trumped Wall Street estimates, driven by "record services revenue" which offset lower iPhone sales amid coronavirus impact.

Apple's second-quarter profit dropped to $11.25 billion or $2.55 per share from $11.56 billion or $2.46 per share last year. On average, 29 analysts polled by Thomson Reuters expected earnings of $2.26 per share for the quarter.

Apple's revenues inched up 1% to $58.31 billion from last year's $58.02 billion. Analysts had a consensus revenues prediction of $54.54 billion.

Apple's revenues from iPhones dropped to $28.96 billion from $31.05 billion last year. Mac sales inched down to $5.35 billion from $5.51 billion last year, and iPad sales dropped to $4.37 billion from $4.87 billion last year. Wearables, Home and Accessories segment improved to $6.28 billion from $5.13 billion last year, while services revenues increased to $13.35 billion from $11.45 billion a year ago.

"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 CEO Tim Cook.

In February, Apple warned that it expected to miss its sales guidance for the second quarter, as the tech giant cited the worldwide iPhone supply shortages due to the production disruption in China, as well as weakened demand among Chinese consumers due to the coronavirus.

In March, Apple said it was shuttering all its retail stores worldwide with the exception of China.

Apple's board of directors declared a dividend of $0.82 per share, an increase of 6 percent. The dividend is payable on May 14, 2020 to shareholders of record as of May 11, 2020.

The board of directors has also authorized an increase of $50 billion to the existing share repurchase program.

AAPL closed Thursday's trading at $293.80, up $6.07 or 2.11%, on the Nasdaq. The stock, however, dropped $4.28 or 1.46%, in the after-hours trade.