Apple a few moments ago issued its earnings report for the March 2020 quarter and posted revenue of $58.3 billion and EPS of $2.55. As a point of contrast, Apple during the same quarter a year-ago posted revenue of $58 billion, a quarterly profit of $11.6 billion, and EPS of $2.46.
Ahead of Apple’s earnings, analysts were anticipating revenue to fall in the $54 billion range and EPS to be around $2.26. Clearly, it was a solid quarter for Apple relative to some of the more pessimistic expectations.
Of course, it goes without saying that evaluating Apple’s performance during the quarter is incredibly tricky on account of the coronavirus. Aside from the economic impact the coronavirus has had on some of the world’s biggest economies, every one of Apple’s retail stores outside of China have been closed since March 13. Also, remember that Apple closed all of its retail stores in China in February, only to reopen them in mid-March. In effect, Apple’s recent earnings report arguably encapsulates about two-thirds of the March quarter.
That said, the fact that Apple was able to keep revenue steady is rather impressive.
“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,” Tim Cook said in a press release.
As for how Apple’s quarterly revenue breaks down across its product line, the iPhone accounted for $28.9 billion in revenue for the quarter, while the Mac and iPad accounted for $5.35 and $4.36 billion, respectively. Apple’s Wearables and suite of Services, meanwhile, generated $6.28 and $13.34 billion in revenue.
Note that analysts were anticipating iPhone revenue to come in around $28.3 billion, Mac revenue at $5.2 billion, iPad revenue at $4.2 billion, Wearables revenue at $7 billion, and Services revenue to come in at $12.85 billion. Impressively, Apple bested analyst expectations across the board.
As a point of reference, Apple in the year-ago quarter saw iPhone revenue check in at $31 billion, Mac revenue at $5.5 billion, iPad revenue at $4.8 billion, Wearables revenue at $5.1 billion, and Services revenue at $11.4 billion.
“Our active installed base of devices reached an all-time high in all of our geographic segments and all major product categories,” Apple CFO Luca Maestri added. “We also generated operating cash flow of $13.3 billion during the quarter, up $2.2 billion over a year ago.”
As Apple typically does following the March quarter, the company boosted its quarterly dividend to $0.82 per share, an amount payable on May 14.
Incidentally, with the coronavirus being as unpredictable as it is, Apple did not issue any guidance for the June quarter.
With year-over-year iPhone revenue falling by about $3 billion, shares of Apple are down about 2% in after-hours trading.