Apple shares jumped more than 6 percent in after-hours trading, after the iPhone maker revealed a record stock buyback program after announcing better-than-expected quarterly results.
Apple announced that its board of directors authorized the repurchase of shares worth $110 billion, an increase of 22 percent from last year’s amount of $90 billion, according to data from Birinyi Associates, and this is the largest share repurchase program in history.
The iPhone maker raised its dividend by four percent.
The company’s quarterly revenues fell, but less than analysts expected, and CEO Tim Cook said revenues would return to growth in the current quarter.
The results and forecasts suggest that the company may regain its position in the smartphone market, despite the fierce competition and regulatory challenges.
Apple said its quarterly financial revenues fell by four percent to $90.8 billion, exceeding analysts’ average estimate of $90.01 billion, according to data from the London Stock Exchange Group.
iPhone sales fell 10% year over year during the quarter, which Apple attributed to the difficult comparison with last year.
Below are Apple’s most important results versus LSEG estimates in the quarter ending March 30:
- Earnings per share: $1.53 versus expectations of $1.50
- Revenue: $90.75 billion versus expectations of $90.01 billion
- iPhone revenue: $45.96 billion versus expectations of $46.00 billion
- Mac revenue: $7.5 billion versus expectations of $6.86 billion
- iPad iPad revenue: $5.6 billion versus expectations of $5.91 billion
- Other Products Revenue: $7.9 billion versus expectations of $8.08 billion
- Services revenue: $23.9 billion versus expectations of $23.27 billion
- Gross margins: 46.6% vs. expectations of 46.6%
Apple did not provide official future guidance, but Apple CEO Tim Cook said overall sales will grow in low single digits during the June quarter, according to CNBC.
The company recorded revenues of $81.8 billion during the June quarter of last year, compared to expectations of $83.23 billion.
On Thursday, Apple announced a net profit of $23.64 billion, or $1.53 per share, a 2 percent decrease from $24.16 billion, or $1.52 per share, in the corresponding period last year.
Cook told CNBC that sales in the fiscal second quarter suffered a tough comparison to the same period a year earlier, when the company realized a $5 billion delay in iPhone 14 sales due to coronavirus-based supply issues.
“If we took the $5 billion off last year’s results, we would have had year-over-year growth this quarter…and that’s how we look at it internally through the company’s performance,” Cook said.
The company’s shares jumped six percent after publishing its report, raising its market value by more than $160 billion.
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