NEW YORK, NY / ACCESSWIRE / August 2, 2018 / Apple and Pandora both saw their shares soar in Wednesday trading after reporting strong quarterly results. Apple also forecast higher than expected revenues for the fourth quarter. Pandora beat on both the top and bottom line and also revealed a significant growth in paid subscribers.
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Apple Inc. shares closed up nearly 6% on Wednesday on trading volume nearly three times as high as usual. The iPhone maker hit a new record high of $201.76 after reporting a record third quarter. For the quarter, the company saw revenue and earnings per share soar 17% and 40% year over year, respectively. Apple reported that services revenue increased 31% year over year to $9.5 billion. This was an all-time quarterly record for the segment. Paid subscriptions went to over $300 million compared to $270 million at the end of the second quarter. The wearable market, which includes Apple’s watch, AirPods, and Beats products, saw an increase of 60% YOY. Looking ahead the tech giant has forecast fourth-quarter revenue of $60 billion to $62 billion, higher than the consensus analyst estimate for revenue of $59.6 billion. CEO Tim Cook remarked on the earnings call, “Our team generated record Q3 earnings per share of $2.34, an increase of 40% over last year.” He also said, “iPhone had a very strong quarter. Revenue was up 20% year-over-year and our active installed base grew by double-digits, driven by switchers, first time smartphone buyers and our existing customers whose loyalty we greatly appreciate. iPhone X was the most popular iPhone in the quarter once again, with a customer satisfaction score of 98% according to 451 Research. Based on the latest data from IDC, iPhone grew faster than the global smartphone market, gaining share in many markets including the U.S., Greater China, Canada, Germany, Australia, Russia, Mexico and the Middle East and Africa.”
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Pandora Media, Inc. shares closed up almost 14.69% on Wednesday with nearly 36 million shares traded. The company saw its shares pop after it reported strong second quarter numbers on Tuesday after the market closed. For the second quarter, Pandora reported net losses of $92 million, or 38 cents a share, compared with losses of $289.7 million, or $1.20 a share, in the year-ago quarter. Adjusted losses for the quarter was 15 cents a share. Revenue grew from $376.8 million in the same quarter last year to $384.8 million. Pandora beat on both the top and bottom line as analysts were expecting adjusted losses of 16 cents and revenue of $373 million. The company also revealed that Pandora Plus and Pandora Premium subscribers grew 23% YOY to roughly 6 million. This is up from 5.63 million last quarter. Subscription revenue also grew 67% year over year to $113.7 million. This excluded Ticketfly, Australia, and New Zealand. CEO Roger Lynch stated, “New partnerships with top brands like Snap and AT&T, as well as enhancements to our ad tech and programmatic offerings, position us to further accelerate growth and ownership of the expanding digital audio marketplace.”
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