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Apple shares set to open at record after ‘blow out’ results

Apple yesterday after market close announced financial results for its fiscal 2020 first quarter ended December 28, 2019. The company posted quarterly revenue of $91.8 billion, an increase of 9 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $4.99, up 19 percent, also an all-time record. International sales accounted for 61 percent of the quarter’s revenue.

Apple Fifth Avenue
Apple CEO Tim Cook remarked in the release: “We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables. During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.”

Wedbush analyst Dan Ives, who rates AAPL an outperform with a $400 price target, write in a note to clients that Apple’s results were a “blow out print” that will “put more high octane fuel in the bull thesis,” as iPhone 11/Pro/Pro Max strength continues worldwide, with China as the “clear star of the show.”

Apple shares rose 2.24% in pre-market trading and are poised to open at a record high.

Kit Rees and Joe Easton for Bloomberg News:

Apple’s first-quarter results spurred optimism among analysts that demand for the tech giant’s iPhones will endure, especially as the company is said to be preparing to launch a new low-cost model and a 5G-enabled device later this year.

Analysts were particularly positive on growth in China, as well as the outlook for the second quarter… The shares rose 2.2% in the U.S. pre-market and are poised to open at a record high.

MacDailyNews Take: Onward and upward, Cupertino soldiers! Since Apple’s earnings release, RBC and Cohen have raised their AAPL price targets to $358 from $330 and to $370 from $350, respectively.

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