Apple beats by $0.10, beats on revs; in-line iPhone and service revenue; guides Q3 revs above consensus; raises dividend 5% to $0.77/share; adds $75 bln to buyback plan (200.67 -3.94)
- Reports Q2 (Mar) earnings of $2.46 per share, $0.10 better than the S&P Capital IQ Consensus of $2.36; revenues fell 5.1% year/year to $58.02 bln vs the $57.4 bln S&P Capital IQ Consensus. Gross m,argin 37.6% vs. 37-38% guidance, in-line with estimates.
- iPhone rev -17% to $31.05 bln vs. $31 bln ests; margin
- Service rev +16% to $11.45 bln vs. $11.4 bln ests; gross margin +100 bps sequentially 63.8%
- Wearables, Home and Accessories +30% to $5.13 bln
- iPad +22% to $4.87 bln
- Co issues upside guidance for Q3, sees Q3 revs of $52.5-54.5 bln vs. $52.09 bln S&P Capital IQ Consensus; gross margin 37-38% vs. 37.9% ests
- "Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record," said Tim Cook, Apple's CEO. "We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We're looking forward to sharing more with developers and customers at Apple's 30th annual Worldwide Developers Conference in June."
- "Given our confidence in Apple's future and the value we see in our stock, our Board has authorized an additional $75 billion for share repurchases. We are also raising our quarterly dividend for the seventh time in less than seven years."
- Reflecting the approved increase, Apple's board of directors has declared a cash dividend of $0.77 per share of the Company's common stock, an increase of 5 percent.