Apple Q2 2020 Results - $58.3 Billion Revenue

Apple has just published its financial results for Q2 2020. The company posted revenue of $58.3 billion. Apple CEO Tim Cook said:

“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,” said Tim Cook, Apple’s CEO. “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.”

Estimates and Expectations for Q2 2020 and the Year-Ago Quarter (Q2 2019)

Apple’s revenue guidance for Q2 2020 originally fell between $63.0 billion and $67.0 billion, with gross margin estimated to be between 38.0% and 39.0%, but in a press release issued on February 17, 2020, the company said it expected to miss that guidance due to iPhone supply constraints and lower demand in China resulting from the COVID-19 pandemic.

Going into today’s earnings call, Barron’s said:

The current Wall Street analyst consensus revenue forecast is $54.6 billion, but the estimates vary dramatically, with the low end of the Street range at $45.6 billion. The consensus profit forecast is $2.27 a share, but again, the range is wide, with estimates running from $1.73 to $2.73 a share.

In the year-ago quarter (Q2 2019), Apple earned $58 billion in revenue.

Graphical Visualization

After the break, we’ve compiled a graphical visualization of Apple’s Q1 2020 financial results.

Apple Q1 2020 on Twitter

Early coverage of Apple’s results is varied, but one theme seems to be “stock falls after Apple refuses to issue Q3 guidance.”

— MacJournals.com (@macjournals) April 30, 2020

Cook, on Apple Q2 earnings call, says co felt temporary supply constraints in February but production was back in full swing by end of March. Aligns with what some analysts have been saying for past month as well; as China opens back up, demand could be a more of a Q than supply.

— Lauren Goode (@LaurenGoode) April 30, 2020

Apple share are down 1.9% in after hours trading, despite revenue beat.

— Patrick McGee (@PatrickMcGee_) April 30, 2020

Our recent #Workingfromhome study certainly confirms how much both #FaceTime and #iMessage are part of the go to apps people rely on for collaboration @BenBajarin https://t.co/gbC9vrhdsp

— Carolina Milanesi (@caro_milanesi) April 30, 2020

#AAPL retail up thanks to online sales really shows how much better that has become over the years and a lot of that is thanks to the time Angela Ahrendts spent at Apple.

— Carolina Milanesi (@caro_milanesi) April 30, 2020

https://twitter.com/reneritchie/status/1255966853706461189

https://twitter.com/macjournals/status/1255966633606119425

Covid-19 Boosted App Store & TV+, Hurt AppleCare & Ads, Cook Says w/ @emilychangtv https://t.co/r6SJbRCyhM

— Mark Gurman (@markgurman) April 30, 2020

Apple Saw Sales Pick Up in Second Half of April After “Depressed” Second Half of March and First Half of April, CEO Cook Says w/ @emilychangtv https://t.co/e1gcJ2eeVU

— Mark Gurman (@markgurman) April 30, 2020

https://twitter.com/ericjackson/status/1255958179894132745

Ok #Apple attention to detail goes all the way to picking the right music for their #earnings call #AAPL a lot somber than usual today and clearly not because of their results! pic.twitter.com/miCZv03Mgt

— Carolina Milanesi (@caro_milanesi) April 30, 2020

Apple CEO Says Austria, Australia Stores to Reopen in 1-2 Weeks w/ @emilychangtv https://t.co/c6VKsFQZ0L

— Mark Gurman (@markgurman) April 30, 2020

Apple Squeezes Growth Out of Pandemic-Ravaged Quarter https://t.co/Td7jVLqgE2 https://t.co/O6sO5stZWk

— Mark Gurman (@markgurman) April 30, 2020

https://twitter.com/BenBajarin/status/1255959500302893056

“We have great confidence in the long-term of our business. In the short-term, it’s hard to see out the windshield to know what the next 60 days look like, and so we’re not going guidance because of that lack of visibility and uncertainty…” (8/10)

— MacJournals.com (@macjournals) April 30, 2020

“There was a significant, very steep fall-off in February. That began to recover some in March, and we’ve seen further recovery in April. So it leaves us room for optimism…It’s hard to tell [if that’s a leading indicator]…” (2/10)

— MacJournals.com (@macjournals) April 30, 2020

Tim Cook, to CNBC, on iPhone demand in China: (1/10)

— MacJournals.com (@macjournals) April 30, 2020

Apple reports: $58.3 billion in revenue, up 1% despite Covid-19.

— Mark Gurman (@markgurman) April 30, 2020