Apple Beats on Revenue and Earnings But Shares Fall

Nelson Wang

Apple beat on both revenues and earnings for its March quarter, but shares fell slightly in after-hours trading on Thursday.

For the quarter, Apple reported sales of $58.3 billion and earnings of $2.55 per share, ahead of estimates for $54.78 billion in revenue and $2.29 in EPS. Apple declined to issue guidance for the current quarter, however. 

Apple shares were falling 2% to $289.39 after-hours on Thursday.

RealMoney columnist Chris Versace is analyzing the company's earnings report due out after the close, and its call with analysts that's scheduled to begin at 5:00 p.m. ET.

Comments (119)
No. 1-50
ChrisVersace
ChrisVersace

And that concludes the Apple March quarter earnings call. Thanks for tuning in, and for more on Apple, be sure to check back with TheStreet. - Chris V out!

ChrisVersace
ChrisVersace

Saw memory price increases decline in March quarter; see more declines in displays and other inputs in the June quarter.

ChrisVersace
ChrisVersace

Q: Input costs?

ChrisVersace
ChrisVersace

The SE allows Apple to give consumers a good deal while making a great product.

ChrisVersace
ChrisVersace

Q: iPhone SE and where it sits in the total iPhone strategy....

ChrisVersace
ChrisVersace

Plays in every geography but better in areas where median incomes are less.

ChrisVersace
ChrisVersace

Q: Strong demand for iPhone SE?

ChrisVersace
ChrisVersace

Store traffic up vs. February but not back to pre-COVID Lockdown levels; online has grown

ChrisVersace
ChrisVersace

Q: China - what is driving the pickup in March and April?

ChrisVersace
ChrisVersace

Strong response to iPhone SE, but customers are those that want a smaller form factor, coming over from Android devices.

ChrisVersace
ChrisVersace

Advertising business on AppStore, Apple News and other - likely to be a headwind for Services in the June quarter

ChrisVersace
ChrisVersace

Apple Care will be down in the June quarter - impacted by Retail Store and partner closures

ChrisVersace
ChrisVersace

A: Company reiterates June outlook for Services to grow QoQ and YoY

ChrisVersace
ChrisVersace

Q: Services expectations for the rest of 2020?

ChrisVersace
ChrisVersace

Apple has final assembly in China, the US and elsewhere

ChrisVersace
ChrisVersace

During the first half of the calendar year, reduce channel inventories and raise them in the second half of the year as new products launch - expect that seasonal pattern to remain intact this year.

ChrisVersace
ChrisVersace

Q: Channel inventory in the March quarter?

ChrisVersace
ChrisVersace

A: $50 billion is on top of more than $40 billion remaining on existing authorization. Nothing to say on M&A

ChrisVersace
ChrisVersace

Q: $50 billion new share repurchase plan increase - context as to why $50 billion given the company's balance sheet; M&A?

ChrisVersace
ChrisVersace

Nothing to announce re: deferred payments today.

ChrisVersace
ChrisVersace

A: Apple working on payment plans for other products in addition to iPhone

ChrisVersace
ChrisVersace

Q: Apple Card and financing plans to get iPhone into consumer hands -- other steps Apple could consider?

ChrisVersace
ChrisVersace

Apple continues to work on new products.

ChrisVersace
ChrisVersace

Q: New product introduction over the coming quarters...

ChrisVersace
ChrisVersace

Manage where can, but will invest for the long-term

ChrisVersace
ChrisVersace

Q: Operating Expenses in the June quarter?

ChrisVersace
ChrisVersace

Expect iPad and Mac to improve YoY in the current quarter.

ChrisVersace
ChrisVersace

Outside of China - slowdown was in March - sharp delcine during the last 2-3 weeks of the quarter; early April similar to March; second half of April, saw a pick up across the board - new products, government stimulus products, consumer behavior to continue working from home.

ChrisVersace
ChrisVersace

A: China - closed stores in February and as the lockdown completed, began to open stores on a staggered basis through mid-March -- demand reboudned in March, April better than March.

ChrisVersace
ChrisVersace

Q: Improvement in the second half of April.....

ChrisVersace
ChrisVersace

Q&A...

ChrisVersace
ChrisVersace

upsized share buy back and dividend increase

ChrisVersace
ChrisVersace

developing pipeline of most exciting products and services....

ChrisVersace
ChrisVersace

Capital allocation - will invest in the future and return value to shareholders

ChrisVersace
ChrisVersace

Services - grow YoY in the June quarter

ChrisVersace
ChrisVersace

iPhone and wearables - see a decline QoQ in the June quarter

ChrisVersace
ChrisVersace

US dollar has appreciated, a headwind to June quarter revenue

ChrisVersace
ChrisVersace

Lack of visibility => no guidance for the quarter but...

ChrisVersace
ChrisVersace

For the June quarter...

ChrisVersace
ChrisVersace

Turning to the balance sheet --- $193 billion in cash

ChrisVersace
ChrisVersace

Bank of America - purchasing IOS devices for workforce

ChrisVersace
ChrisVersace

Apple pay - contactless payments -

ChrisVersace
ChrisVersace

IBM, SAP - been able to pivot quickly to allow employees to set up at home

ChrisVersace
ChrisVersace

With the transition to work remotely - Apple has developed helpful videos to showcase its services

ChrisVersace
ChrisVersace

Active install base for Mac and iPad - new all time high

ChrisVersace
ChrisVersace

75% of new apple watch buyers during the quarter - new to the product

ChrisVersace
ChrisVersace

Wearables - size of a Fortune 140 company

ChrisVersace
ChrisVersace

Should reach 600 million target before the end of 2020

ChrisVersace
ChrisVersace

over 515 million paid subscriptions, up more than 35 million QoQ

ChrisVersace
ChrisVersace

Apple Music and Cloud - all time records


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