Apple Q2 Results Beat Expectations Despite iPhone Fears; unveils a $110 billion buyback

On May 2, 2024By Vaseline

Apple Store on 5th Ave in Manhattan, New York City — ozgurdonmaz

Apple (NASDAQ:AAPL) shares rose 3.5% in extended trading on Thursday after the tech giant posted second-quarter financial results that were better than expected despite concerns about the iPhone in China.

For the period ended March 30, Apple earned $1.53 per share on revenue of $90.75 billion, while the iPhone good for $45.96 billion in sales. Analysts expected the company to earn $1.50 per share on $90.33 billion.

Weakness during the period was the company’s iPad and Wearables businesses, both of which had revenues of $5.56 billion and $7.91 billion. Analysts expected $5.91 billion and $8.29 billion, respectively.

Apple’s Mac business generated revenue of $7.45 billion, surpassing analyst estimates of $6.79 billion. Also at the top of analysts’ expectations was Apple’s Services business, which posted revenues of $23.87 billion during the period, ahead of the $23.28 billion forecast.

Greater China revenue during the period was $16.37 billion, above the $15.87 billion analysts expected. Several industry analysts recently pointed to weak iPhone sales in the region amid increased competition.

In a statement, CEO Tim Cook acknowledged the launch of the Vision Pro and hinted at an “exciting” product announcement next week, which is widely expected to be updated iPads.

“As always, we are focused on delivering the very best products and services to our customers, and we do this while adhering to the core values that drive us,” said Cook.

The company also updated its capital return plan, added $110 billion to its buyback program and increased its quarterly dividend to $0.25 per share, up 4%.

Victor Dergunov, leader of the Seeking Alpha Investing Group, called Apple’s report “solid,” pointing to both the top- and bottom-line numbers, as well as the dividend and buyback increases.

“Apple is doing an excellent job of keeping investors interested in its stock during this period of slowdown,” Dergunov said via email.

Apple will hold a conference call to discuss the results at 5:00 PM EST.