Despite the Challenges of COVID-19, Apple Delivered 1% Growth YoY due to strong performances in Services and Wearables
In late January Apple CFO provided guidance for Fiscal Q2 with revenue to be between $63.0 billion and $67.0 billion. Then China's Wuhan Virus hit the world and in a flash Apple released a preannouncement in mid-February that the company would miss their guidance for Q2. Today Apple announced their financials for fiscal Q2 that ended on March 31st and posted quarterly revenue of $58.3 billion, an increase of 1 percent from the year-ago quarter, but well short of their bottom-line guidance of $63 billion. For the quarter, Apple revealed that international sales accounted for 62 percent of the quarter’s revenue.
Apple's CEO Tim Cook: "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. In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund."
Apple's CEO revealed during his usual conference call summary, that unlike past Quarters, there would be no guidance provided for their Fiscal Q3 2020. Although the U.S. and the rest of the world are going to attempt to slowly get back to work in Q3, it's understandable that Apple isn't able to provide clear guidance for the following quarter due to the many variables that could be in play.
Luca Maestri, Apple’s CFO: "We are proud of our Apple teams around the world and how resilient our business and financial performance has been during these challenging times. Our active installed base of devices reached an all-time high in all of our geographic segments and all major product categories. We also generated operating cash flow of $13.3 billion during the quarter, up $2.2 billion over a year ago. We are confident in our future and continue to make significant investments in all areas of our business to enrich our customers’ lives and support our long-term plans — including our five-year commitment to contribute $350 billion to the United States economy."
Apple’s board of directors has declared a cash dividend of $0.82 per share of the Company’s common stock, an increase of 6 percent. The dividend is payable on May 14, 2020 to shareholders of record as of the close of business on May 11, 2020. The board of directors has also authorized an increase of $50 billion to the existing share repurchase program.