Market concerns vanish as Apple posts best-ever second quarter
Market concerns around flagging iPhone sales were all but forgotten overnight on Tuesday, as Apple announced its best ever second quarter results.
Apple Inc.
$169.02
13:09 24/04/24
Dow Jones I.A.
38,460.92
04:30 15/10/20
Nasdaq 100
17,526.80
12:15 24/04/24
The California-based technology giant posted quarterly revenue of $61.1bn - an increase of 16% from a year ago - and quarterly earnings per diluted share of $2.73, up 30%.
International sales accounted for 65% of the quarter’s revenue, the firm said.
“We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, services and wearables,” said CEO Tim Cook.
“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, the company’s CFO, said the business performed “extremely well” during the March quarter, as it grew earnings per share by 30% and generated more than $15bn 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 $100bn share repurchase authorisation and a 16% increase in our quarterly dividend.”
Apple said it would complete the execution of the previous $210bn share repurchase authorisation during the third fiscal quarter.
Reflecting the approved increase, the board declared a cash dividend of 73 cents per share of Apple’s common stock payable on 17 May, to shareholders of record as of the close of business on 14 May.
The company said it also expected to continue to net-share-settle vesting restricted stock units.
From the inception of its capital return program in August 2012 through to March this year, Apple said it had returned $275bn to shareholders, including $200bn in share repurchases.
The management team and the board said they would continue to review each element of the capital return program regularly, and planned to provide an update on the program on an annual basis.
Regarding the third quarter, Apple issued guidance for revenue between $51.5bn and $53.5bn, and a gross margin of between 38% and 38.5%.
It said it expected expenses of between $7.7bn and $7.8bn, with other income of $400m and a tax rate of around 14.5%.