Wednesday’s Headlines: iPhone Sales Drive Apple’s Successful Quarter
1. Apple reported revenue and profit significantly higher than estimates, with the stock spiking over 3% in after-hours trading on Tuesday. Earnings per share came in at $4.99 on revenue of $91.8 billion, versus estimates of $4.55 over $88.5 billion, thanks in large part to an 8% increase in iPhone revenue to $56 billion. Apple’s services business, which comprises online software like iCloud, warranties like AppleCare, and content like Apple TV+, was up 17% year-over-year to $12.7 billion. Read the full report here.
2. Starbucks on Tuesday reported quarterly earnings that beat analysts’ expectations, but the company said that its fiscal 2020 forecast could change as a result of the Wuhan coronavirus outbreak. Earnings per share came in at $0.79 on top of revenue of $7.1 billion, versus analyst expectations of $0.76 on $7.1 billion, while same-store sales were up 5% versus the 4.4% expected. It is forecasting its fiscal 2020 revenue to rise between 6% and 8% and global same-store sales growth in a range of 3% to 4%. Get the complete report here.
3. Merchant software firm Shopify saw its stock jump nearly 4% on Tuesday after the company announced a planned expansion later this year. The Ottawa-based technology company says it will be hiring 1,000 people in Vancouver and open its first permanent office in the city in late 2020. The announcement comes as Shopify is preparing to go head-to-head with Amazon by rolling out a network of fulfillment centers to help U.S. merchants lower shipping costs and ensure timely deliveries. For the full story, read here.