Apple soars after $110bn buyback on the heels of strong quarter
Last updated: 16:44 02 May 2024 EDT, First published: 11:44 02 May 2024 EDT
Apple Inc (NASDAQ:AAPL, ETR:APC) shares surged in after-hours trading following the tech giant's robust fiscal 2Q 2024 earnings report, which surpassed expectations and showcased resilience despite a drop in iPhone sales.
The company reported earnings per share (EPS) of $1.53, exceeding estimates of $1.50, while sales reached $90.8 billion, surpassing the estimated $90 billion.
In a move signaling confidence in its financial position, Apple authorized an additional $110 billion for share repurchases, marking the largest buyback program on record. The company also increased its dividend by 4% to $0.25.
Notably, iPhone sales totaled $45.93 billion - a decline of 10%.
Mac sales stood at $7.45 billion, while iPad sales reached $5.56 billion.
Wearable sales demonstrated strength, totaling $7.91 billion, while services revenue hit $23.86 billion, underscoring the growing significance of Apple's service offerings.
Apple CEO Tim Cook highlighted the exceptional performance of the Services segment, which was “an all-time revenue record,” he told shareholders.
Cook projected low single-digit sales growth for the June quarter. He attributed the decline in net income and sales partly to delayed iPhone 14 sales due to Covid-related supply issues.
Following the earnings report, Apple's shares surged by 3.72% in after-hours trading.
Apple also disclosed plans for new iPads and highlighted upcoming AI-related announcements.
