Apple shares rise higher after earnings beat
Shares of Apple rose in late trading on Thursday after the company’s latest quarterly results came in better than analysts expected.
For its 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 share was up 2.3% in after-market trading shortly after the publication of the earnings report.
Most of the revenue pace was driven by stronger-than-expected sales for the company’s iPhone unit, which generated revenue of $51.33 billion in the quarter, up 1.5% from a year earlier. Wall Street expected quarterly iPhone sales of $48.66 billion.
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Services revenue of $20.91 billion was slightly below estimates of $20.96 billion. Mac revenue of $7.17 billion was below estimates of $7.78 billion. iPad revenue of $6.67 billion was in line with expectations. Revenue for wearables, home and accessories was $8.76 billion, ahead of expectations of $8.38 billion.
“We are pleased to report a record in Services and a record March quarter for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” CEO Tim Cook said in the results. release. “We continue to invest for the long term and lead with our values, including making great strides towards building carbon-neutral products and supply chains by 2030.”
The company said it would increase its dividend by 4% to 24 cents a share. It will be paid out on 18 May to shareholders registered at the close on 15 May. The board also approved an additional share repurchase program that buys back up to $90 billion in shares.
Apple joins its Big Tech peers reporting fairly positive reports. Reports from Microsoft ( MSFT ), Alphabet ( GOOGL ) and Meta Platforms ( META ) were mostly well received by Wall Street. Amazon.com
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The results topped estimates, but a weak outlook around the cloud sent shares tumbling. Apple investors are hoping that the company will follow in Microsoft’s footsteps, and not Amazon’s.
Apple will host an earnings call at 5:00 PM ET. JP Morgan analyst Samik Chatterjee, who rates Apple overweight with a price target of $190, wrote on Wednesday that Wall Street will heed the firm’s comments about the current quarter. The FactSet consensus call for the June quarter is for earnings of $1.21 per share and sales of $84.5 billion.
Shares of Apple are up 28% this year, and roughly flat over the past 12 months.
Write to Connor Smith at connor.smith@barrons.com
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