Apple Announces Impressive Profits, Boosts Buyback Plan, Increases Dividend
shares trade higher on Wednesday after the company posted an impressive rate of revenue and sales for the second fiscal quarter ended March 31.
For the quarter, Apple reported revenue of $ 89.6 billion, up 54% from $ 58.3 billion reported a year earlier and $ 12 billion ahead of forecast consensus Street at $ 77 billion. Profits were $ 1.40 a share, crushing the Street consensus to 98 cents.
(ticker: AAPL) also announced a $ 90 billion expansion of its share buyback program and increased its quarterly dividend by 7% to 22 cents per share.
“This quarter reflects both the sustainable way our products have helped our users navigate this moment in their lives, as well as the optimism consumers seem to be feeling about a better day for all of us,” said the CEO of ‘Apple, Tim Cook, in a statement. “Apple is in a period of far-reaching innovation in our product line, and we remain focused on how we can help our teams and the communities in which we work to emerge from this pandemic into a better world.”
CFO Luca Maestri added in a statement that Apple achieved record revenue in every geographic segment and double-digit growth in every product category. He notes that the company had $ 24 billion in cash flow from operations in the quarter and returned nearly $ 23 billion to holders of dividends and share buybacks.
The quarter was led by $ 47.9 billion in iPhone sales, up 65.5%, and well ahead of Street’s estimate of around $ 41.4 billion. Services revenue was $ 16.9 billion, up 26.6%, more than $ 1 billion ahead of Street’s expectations. Mac sales were $ 9.1 billion, up 70.1%, while iPad sales were $ 7.8 billion, up 79.4%, both ahead on Street’s estimates. Wearable device sales reached $ 7.8 billion, up 24.7%, also better than expected by The Street.
The company experienced strong growth in all geographies, with China advancing 88%. Sales increased 35% in the Americas, 56% in Europe, 49% in Japan and 94% in the rest of Asia.
In a conference call with analysts, Maestri said Apple was not providing specific revenue forecasts due to lingering uncertainties related to Covid. He said the company expects “strong double-digit growth” in revenue in the June quarter, but added that the sequential decline from the March quarter will be larger than in previous years. , due to the later iPhone 12 launch last year and some impact from component shortages.
He said the company expects its revenues to be reduced from $ 3 billion to $ 4 billion in the June quarter due to supply constraints. He also said the gross margin is expected to be 41.5% to 42.5% in the June quarter, down from 42.5% in the March quarter.
Apple’s late trading was up 3% to $ 137.62.
Write to Eric J. Savitz at [email protected]