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Apple beats earnings and announces stock split, bringing the stock to a record high

Apple Inc. wiped the COVID-19 crisis to report record results on Thursday, and the company said it plans to split its shares in an effort to “make it more accessible to a wider base of investors.”

Apple shares AAPL,
+ 1.21%
gained 5.2% in after-hours trading, pushing stocks higher than $ 400, a level the shares never overshadowed in regular trading.

The company posted a net result of $ 11.25 billion, or $ 2.58 per share, in the third quarter, versus $ 10.04 billion, or $ 2.18 per share, in the previous quarter. Analysts surveyed by FactSet had anticipated $ 2.05 per share.

Apple’s revenue for the quarter increased from $ 53.81 billion to $ 59.7 billion, while FactSet’s consensus was $ 52.24 billion. The company generated $ 26.42 billion in revenue from its iPhone segment, compared to $ 26.99 billion a year ago and the $ 22.2 billion that analysts expected. This is the first quarter that includes sales of the iPhone SE, Apple’s cheaper smartphone launched in August. International sales accounted for 60% of the company’s sales in the period.

The company declined to provide a current quarter financial forecast in its release, but said the board of directors has approved a four-to-one stock split. Apple shareholders registered from the end of trading on August 24. Trading will start on August 31, based on a split correction.

IPad business sales increased from $ 6.52 billion to $ 6.58 billion, while Mac’s revenue was $ 7.08 billion, compared to $ 5.82 billion a year earlier. Analysts had modeled $ 4.85 billion in iPad revenue and $ 6.03 billion in Mac revenue.

Apple’s fast-growing service segment saw sales grow from $ 13.46 billion to $ 11.45 billion in the quarter, above estimates of $ 13.1 billion. Revenues from wearables, accessories and household products rose from $ 5.5 billion to $ 6.45 billion, exceeding estimates, which required $ 5.98 billion.

The company was forced to temporarily close its stores outside of China in March due to the pandemic, and although it gradually began to reopen some of its locations towards the end of May, it moved to some of them in states where the crisis occurred. worsen.

The report comes a day after Chief Executive Tim Cook met with lawmakers at a House Judiciary Committee hearing on antitrust issues. Representatives have grilled Cook on Apple’s App Store practices, including the costs it charges developers to sell digital services through iPhone apps and whether Apple has drawn competitive apps that it deems competitive for its own native offering.

Amazon.com Inc. AMZN,
+ 0.60%,
Alphabet Inc. Oogl,
+ 0.97%
+ 0.62%,
and Facebook Inc. FB,
+ 0.51%,
whose top executives were also questioned during the hearing, reported with Apple on Thursday afternoon on June’s earnings.

Apple shares are up 30% in the past three months as the Dow Jones Industrial Average DJIA,
of which Apple is a part, has won 8%.