Apple Does It Again With Q2 Earnings
Apple Inc. (NASDAQ: AAPL) released its fiscal second-quarter financial results after markets closed Tuesday. The iPhone giant said that it had $2.73 in earnings per share (EPS) on $61.1 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $2.69 in EPS on $60.98 billion in revenue. The same period of last year had $2.10 in EPS on $52.9 billion in revenue.
In this quarter, the firm reported its product sales as follows:
- iPhone moved 52.2 million units, up 3% year over year. The segment pulled in revenues of $38.0 billion, an increase of 14%.
- iPad reported 9.11 million units sold, an increase of 2%. Revenues increased 6% to $4.11 billion.
- Mac sold 4.08 million units, a decrease of 3% from last year. Revenues remained flat at $5.85 billion.
- Services revenues increased 31% to $9.19 billion.
- Other Products revenues increased 38% to $3.95 billion.
Apple said that it will complete the execution of its previous $210 billion share repurchase authorization during the third fiscal quarter. Apple’s board of directors has declared a quarterly cash dividend of $0.73 per share of Apple’s common stock payable on May 17, to shareholders of record as of the close of business on May 14. That’s an increase of $0.21 per share over the previous dividend.
In terms of the guidance for the fiscal third quarter, the company expects to see revenues in the range of $51.5 billion to $53.5 billion and gross margin in the range of 38% to 38.5%. The consensus estimates call for $2.16 in EPS on $52.04 billion in revenue.
Tim Cook, Apple’s CEO, commented:
We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables. Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan.
Luca Maestri, Apple’s CFO, added:
Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow. With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our US operations and work toward a more optimal capital structure. Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization and a 16 percent increase in our quarterly dividend.
Shares of Apple closed Tuesday up 2.3% at $169.10, with a consensus analyst price target of $192.94 and a 52-week range of $142.20 to $183.50. Following the announcement, the stock was up 4% at $175.87 in the after-hours session.