Apple stock spikes after reporting strong guidance and earnings beat

Apple stock spikes after reporting strong guidance and earnings beat


  • Apple’s March quarter earnings were in line with expectations.
  • Apple’s guidance for next quarter was higher than analysts expected.
  • Apple also said it would spend $75 billion on share repurchases and it approved a 77 cent dividend per share.
  • The stock rose sharply in extended trading.

Apple reported earnings for its March quarter Tuesday that fell in line with expectations, although revenue was down from the same period last year. However, Apple’s guidance for next quarter was higher than analysts expected, and it said it planned to spend $75 billion buying back its own shares.

Apple stock spiked over 4% and it approached a $1 trillion market value in extended trading.

 

Here’s how the company did compared to what Wall Street expected:

  • EPS: $2.46 vs. $2.36 forecast by Refinitiv consensus estimates
  • Revenue: $58.02 billion vs. $57.37 billion forecast by Refinitiv consensus estimates
  • Q2 iPhone revenue: $31.05 billion vs. $31.10 billion expected forecast by FactSet consensus estimates
  • Q2 services revenue: $11.45 billion vs. $11.37 billion forecast by FactSet consensus estimates
  • Projected Q3 revenue: $52.5 to $54.5 billion vs. $51.94 billion forecast by Refinitiv consensus estimates

Apple’s total sales were down 5% from the same period last year, although it doesn’t seem to matter to investors as the stock is up.

Guidance for Apple’s fiscal third quarter was higher than expected, suggesting Apple’s iPhone demand machine is stabilizing again and that services revenue continues to grow. In January, Apple cut its first-quarter forecast, blaming slow iPhone sales in China.

iPhone revenue was also down 17.33% year-over-year. iPhone revenue accounted for 53.5% of Apple’s revenue for the quarter, which is lower than it has historically been. Read more




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