Apple beats by $0.08, reports revs in-line, misses on iPhones; guides Q3 revs just below consensus; increases buyback and dividend 10.5% to $0.63/share (147.51 +0.93)
- Reports Q2 (Mar) earnings of $2.10 per share, $0.08 better than the Capital IQ Consensus of $2.02; revenues rose 4.6% year/year to $52.9 bln vs the $53.08 bln Capital IQ Consensus.
- Q2 iPhones 50.8 mln vs 52.5 mln ests 51.2 mln last year.... iPads 8.9 mln vs 9.6 mln ests vs 10.2 mln last year (first time in 6 years below 10 mln) Q2 Macs 4.2 mln vs 4.2 mln ests vs 4.0 mln last year.
- Gross margin of 38.9% vs Street Expectations of ~38.8% vs 39.4% last year (guidance 38-39%)
- Co issues downside guidance for Q3, sees Q3 revs of $43.5-45.5 bln vs. $45.65 bln Capital IQ Consensus; sees Q3 gross margins of 37.5-38.5% vs Street expectations of 38.2%.
- As part of the latest update to the program, the Board has increased its share repurchase authorization to $210 billion from the $175 billion level announced a year ago. The Company also expects to continue to net-share-settle vesting restricted stock units.
- The Board has approved a 10.5% increase to the Company's quarterly dividend, and has declared a dividend of $0.63 per share of the Company's common stock, payable on May 18, 2017 to shareholders of record as of the close of business on May 15, 2017. From the inception of its capital return program in August 2012 through March 2017, Apple has returned over $211 billion to shareholders, including $151 billion in share repurchases. The Company plans to continue to access the domestic and international debt markets to assist in funding the program
* Apple prelim Q2 $2.10 vs $2.02 Capital IQ Consensus Estimate; revs $52.9 bln vs $53.08 bln Capital IQ Consensus Estimate
* Apple reported Q2 gross margin of 38.9% vs Street Expectations of ~38.8% vs 39.4% last year (guidance 38-39%); Apple sees Q3 gross margins of 37.5-38.5% vs Street expectations of 38.2%
* Apple sees Q3 revs $43.5-45.5 bln vs $45.65 bln Capital IQ Consensus Estimate; sees gross margin between 37.5% and 38.5%
* Apple reports Q2 unit metrics
- Co reported Q2 iPhones of 50.8 mln vs 52.5 mln ests 51.2 mln in the same quarter as last year.
- Co reported Q2 iPads of 8.9 mln vs 9.6 mln ests vs 10.2 mln in the same quarter as last year (Note: This is the first time in 6 years that iPad sales were below 10 mln).
- Co reported Q2 Macs of 4.2 mln vs 4.2 mln ests vs 4.0 mln in the same quarter as last year.