Canaccord analyst T. Michael Walkley raised the firm’s price target on Apple to $460 from $444 and reiterates a Buy rating on the shares. The analyst views last night’s fiscal Q3 results as “impressive.” Apple is demonstrating during the pandemic the strength of its products and ecosystem with a return to year-over-year growth for iPhones and double-digit growth for Macs and iPads, Walkley tells investors in a research note. Apple shares are “compelling” for long-term investors with the 5G upgrade cycle a potential benefit during 2021, other hardware categories growing double digits and continued business mix shift towards high-margin services, adds the analyst.
RBC Capital analyst Robert Muller raised the firm’s price target on Apple to $445 from $390 and keeps an Outperform rating on the shares after its Q3 results, saying the quarter was “good” to iPhone SE performance, as demand continued to top expectations and help drive an all-time high install base.
The stock offers a favorable set-up heading into Q4 before a “significant” iPhone generation upgrade cycle, the analyst tells investors in a research note, citing his increased confidence in Apple’s ability to drive recurring cash flows from its “loyal customer base.”
DA Davidson analyst Tom Forte raised the firm’s price target on Apple to $480 from $355 and keeps a Buy rating on the shares. The company’s Q3 results were “strong” amid “robust demand” across its portfolio, the analyst tells investors in a research note. Forte adds that Apple saw “record” installs across its major product categories, even though the management anticipates the delay of a few weeks in the company’s new product launches this fall.
Raymond James analyst Chris Caso raised the firm’s price target on Apple to $440 from $400 and keeps an Outperform rating on the shares following the June quarter results. The analyst says Apple “somewhat surprisingly” admitted to new iPhone availability “a few weeks later” vs. last year, which Caso expects will serve to push iPhone revenue from September to December. The analyst adds that the report doesn’t significantly change his view of 2H20 or the upcoming 5G iPhone ramp.
Morgan Stanley analyst Katy Huberty raised the firm’s price target on Apple to $431 from $419 and keeps an Overweight rating on the shares. The analyst, who argues following the company’s revenue beat that Apple remains “an ecosystem, not just a product cycle story,” is bullish on accelerating iPhone growth, the increased importance of consumer computing devices to support work, play and learn from home trends and users’ higher engagement with digital services. She recommends adding to Apple positions ahead of the 5G iPhone launch, Huberty added.
On July 30, 2020, Apple® nnounced financial results for its fiscal 2020 third quarter ended June 27, 2020. The Company posted quarterly revenue of $59.7 billion, an increase of 11 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.58, up 18 percent. International sales accounted for 60 percent of the quarter’s revenue.
Apple reported Q3 EPS of $2.58 versus the consensus estimate of $2.04. The commpany reported Q3 revenue of $59.7B versus the consensus estimate of $52.25B.
“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple’s CEO. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation. This is a challenging moment for our communities, and, from Apple’s new $100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it.”
“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times,” said Luca Maestri, Apple’s CFO. “The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories. We grew EPS by 18 percent and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics.”
Apple’s Board of Directors has declared a cash dividend of $0.82 per share of the Company’s common stock. The dividend is payable on August 13, 2020 to shareholders of record as of the close of business on August 10, 2020.
The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.
CNBC’s Jim Cramer gives his take on the Big Tech earnings results released after the bell on Thursday, including Apple’s decision to split its stock.