Apple stock rises against the earnings beat

Shares of Apple Inc rose in late trading Thursday after the company’s latest quarterly results came in better than analysts expected.

In the fiscal second quarter, Apple reported earnings of $1.52 per share, on revenue of $94.8 billion.

Analysts polled by FactSet expected earnings of $1.43 per share, on sales of $92.9 billion.

The stock rose 2.3% in after-hours trading shortly after the earnings report was released.

Most of the revenue was driven by stronger-than-expected sales of the company’s iPhone unit, which generated $51.33 billion in revenue in the quarter, up 1.5% from a year ago. Wall Street predicted quarterly iPhone sales of $48.66 billion.

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Services revenue of $20.91 billion was just below estimates of $20.96 billion. Mac revenue of $7.17 billion was lower than estimates of $7.78 billion. iPad revenue of $6.67 billion was in line with expectations. Wearables, home and accessories revenue was $8.76 billion, beating expectations of $8.38 billion.

“We’re thrilled to report an all-time record for services and a quarterly record for iPhone despite a challenging macro environment, and that our installed base of active devices is at an all-time high,” CEO Tim Cook said in the earnings report. launch. “We continue to invest for the long term and lead by our values, including making significant progress toward building carbon neutral products and supply chains by 2030.”

The company said it would increase its dividend by 4%, to 24 cents per share. It will be payable on May 18th to shareholders of record at the close of business on May 15th. The Board also authorized an additional share buyback program to buy back up to $90 billion in shares.

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Apple joins its Big Tech peers reporting somewhat positive reports. Reports from Microsoft (MSFT), Alphabet (GOOGL), and Meta Platforms (META) have been mostly well received by Wall Street.

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The company’s results beat estimates, but the weak outlook on the cloud caused shares to drop. Apple investors hope the company will follow in the footsteps of Microsoft, not Amazon.

Apple will host an earnings call at 5 PM ET. JP Morgan analyst Samik Chatterjee, who rates Apple at Overweight with a $190 price target, wrote Wednesday that Wall Street will pay attention to the company’s commentary about the current quarter. FactSet’s consensus call for the June quarter is earnings of $1.21 per share on sales of $84.5 billion.

Apple shares are up 28% this year, and have been roughly flat over the past 12 months.

Write to Connor Smith at [email protected]

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