Apple, Inc. (NASDAQ:AAPL) reported Thursday with second-quarter results that outperformed muted goals. The company announced a massive $110-billion stock buyback program. The shares of this underperforming big tech stock rose about 3.5% following the earnings announcement.
Apple’s Key Q2 Numbers: As was widely expected, Cupertino, California-based Apple reported a year-over-year revenue decline. Apple had snapped a four-quarter-long streak of falling revenue in the December quarter. Apple’s second-quarter earnings per share also fell from one year ago.
Here’s how key metrics stacked up against the consensus estimates and prior periods:
| Q2’24 (Actual) |
Q2’24 (Consensus*) |
Q2’23 | Q1’24 | |
| Revenue | $90.75B | $90.01B | $94.84B | $119.6B |
| Non-GAAP EPS | $1.53 | $1.50 | $1.52 | $2.18 |
| Gross margin | 46.58% | N/A | 44.26% | 45.88% |
“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said CEO Tim Cook in a statement.
Sales of iPhones and Wearables came in a touch below estimates of several analysts, but Mac and Services revenue beat expectations.
Commenting on the results, CFO Luca Maestri said: “Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter.”
Apple’s Shareholder Returns: Apple’s board declared a quarterly cash dividend of 25 cents per share, payable on May 16 to shareholders of record as of May 13. Citing confidence in Apple’s future and the value the company sees in the stock, the company said it board has authorized an additional $110 billion for share repurchases.
See Also: Everything You Need Yo Know About Apple Stock
Apple’s Forward Outlook: For the third quarter, which is seasonally weak, the Street forecasts earnings per share of $1.30 and revenue of $82.89 billion.
“We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month,” said Cook.
Key upcoming events that could have a bearing on Apple stock include:
- DOJ vs. GOOGL closing arguments
- June 10 WWDC
Apple Earnings Call Focus: The focus now shifts to the earnings call, which is scheduled for 5 p.m. EDT. Cook will likely shed more light on Cupertino’s broader AI strategy. This assumes importance because rumors suggest the company is negotiating with both OpenAI and Alphabet to bring AI to its iPhones.
AAPL Stock: Apple closed Thursday’s regular session up 2.20% at $173.03 and has added an incremental 3.52% to $179.12 in after-hours trading, according to SPY).
Photo courtesy of Apple.
