Apple (NASDAQ:AAPL) reported its earnings for the first quarter of fiscal 2020 on Tuesday after the market close. Overall, the results were impressive. The company also shared important updates about its various businesses.
Apple’s Q1 earnings at a glance
Apple reported an all-time high revenue of $91.8 billion for the fiscal first quarter ending in December 2019. The revenue, which increased 9.0% YoY (year-over-year), beat the consensus estimate at $88.4 billion. The revenue was well above Apple’s most bullish forecast of $89.5 billion.
The company posted an EPS of $4.99—an all-time high. The EPS rose 19% YoY and beat the consensus estimate at $4.53.
The strong results came after strong iPhone sales. The company reported iPhone revenue of $56 billion—growth of 8.0% YoY. The iPhone business returned to growth after several quarters of sliding sales. Apple said that the strong demand for the iPhone 11 and iPhone 11 Pro models supported the iPhone revenue growth in the latest quarter.
Video service off to a strong start
During Apple’s earnings call, executives discussed the recently launched Apple TV+ video service. Apple CEO Tim Cook stated that Apple TV+ had a strong start. The service launched on November 1 at a price of $4.99 a month. Notably, the service entered a crowded market where Netflix (NASDAQ:NFLX) has been successful for years. Shortly after Apple TV+ launched, Disney+ from Walt Disney (NYSE:DIS) entered the scene and increased the competition.
The Apple TV+ launch expanded Apple’s services business—an important growth engine for the company. Apple’s service revenue rose 17% YoY to an all-time high of $12.7 billion in the first quarter.
With Apple TV+, the company is eyeing a $125 billion revenue opportunity in the video streaming market.
Apple returns $25 billion to shareholders
Apple continues to return money to its shareholders. The company returned about $25 billion to its shareholders during the first quarter. The cash returns included $20 billion in stock repurchases and the rest dividends.
Apple finished the quarter with $99 billion in net cash. The company aims to become net cash neutral. Therefore, the $99 billion net cash reserve shows that the company will continue to return cash to shareholders.
Apple stock gained 1.51% in after-hours trading after releasing the earnings report. The stock has gained about 8.2% year-to-date through Tuesday. So far, Apple is one of the top FAAG stocks in 2020.