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Apple Beats Q2 Earnings Estimates, Announces $100 Billion Buyback Plan

AAPL

Apple Inc (NASDAQ: AAPL) shares rose more than 4 percent following a second-quarter earnings report after Tuesday's close.

Still the world’s largest company, the tech giant delivered second-quarter earnings of $2.73, beating estimates by 3 cents. Sales came in at $61.1 billion, slightly above estimates.

Apple also announced a new $100 billion buyback plan and raised its quarterly dividend by 16 percent from 63 cents per share to 73 cents per share. Apple issued third-quarter sales guidance of $51.5 billion-$53.3 billion, against a $52 billion estimate.

"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables," CEO Tim Cook said in a press release. "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."

The company grew revenue in every geographic segments, with over 20 percent growth in Greater China and Japan.

"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," CFO Luca Maestri said. "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."

Q2 Highlights

  • 52.5 million iPhone units sold
  • 4.08 million Mac units sold
  • 9.11 million iPad units sold
  • Revenue grew 16 percent
  • EPS grew 30 percent to new March quarter record

At time of publication, Apple shares were trading up 4.4 percent at $176.52.

Be sure to listen to Benzinga's PreMarket Prep trading show on Wednesday morning from 8-9 a.m. Piper Jaffray's Mike Olson and Loup Ventures' Gene Munster will break down the earnings report.

Related Links:

The Future Of Retail Is 'SIMPL': What It Means And Why It Matters For Apple Investors

Apple Will Be King Again: DA Davidson Initiates With Buy Rating, $220 Target



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