Apple to split stock 4:1 following blockbuster earnings
CEO Cook: ‘Performance is a testament to the important role our products play’
Apple delivered another blockbuster quarterly earnings report Thursday and with the Apple stock price approaching $400 a share the company announced that it would have a stock split this year.
The company behind the iPhone had Wall Street estimates for revenue at $52.2 billion, but the company flew by those numbers hitting $59.7 billion. That is an increase of 11 percent compared to the quarter a year ago.
A four-for-one stock split will be offered “to make the stock more accessible to a broader base of investors,” according to the earnings release. At the close of the market on August 24th, each Apple shareholder of record will get three extra shares for every share held. Split-adjusted trading will begin on August 31.
Apple previously had a 7-for-1 stock split in 2014.
“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” Apple’s CEO Tim Cook said in a statement, “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.”
Part of that innovation has been the Apple watch, which falls under the compay’s wearables division which rose 16.7 perecent generating $6.45 billion in sales, compared to $5.53 billion a year ago.
Shares of Apple stock rose 5 percent in extended trading.