Apple unveils record $110 billion buyback as results beat low expectations.
👉 $AAPL (Apple) ‘s quarterly results and forecast beat modest expectations, as the iPhone maker unveiled a record share buyback program, sending its stock up almost 7% in extended trade.
👉 Apple increased its cash dividend by 4% and authorized an additional program to buy back $110 billion of stock. The buyback is the largest in the company's history, according to Investing.com analyst Thomas Monteiro.
👉 Apple's quarterly revenue fell, but less than analysts had expected, and CEO Tim Cook said revenue growth would return in the current quarter. The results and guidance suggest the company may be regaining its footing in the smartphone market, despite stiff competition and regulatory challenges.
👉 Apple said fiscal second-quarter revenue fell 4% to $90.8 billion, beating the average analyst estimate of $90.01 billion, according to LSEG data.
👉For Apple's current quarter, which ends in June, Cook told Reuters the iPhone maker expects "to grow low-single digits" in overall revenue. Wall Street expected 1.33% revenue growth to $82.89 billion, according to LSEG data.
👉 Long considered a must-own stock on Wall Street, Apple shares have underperformed other Big Tech companies in recent months, falling 10% this year as it struggles with weak iPhone demand and tough competition in China.
👉Apple expects current-quarter services and iPad revenue to grow by double digits, CFO Luca Maestri told analysts on a conference call. The company expects gross margins of between 45.5% and 46.5% for the fiscal third quarter.
👉 Apple faces a raft of challenges across its business. Smartphone rivals such as $SMSN.L (Samsung Electronics Co Ltd - GDR) have introduced competing devices aimed at hosting artificial-intelligence chatbots.
❓ Read more at: www.reuters.com/technology/apple-sales-fall-less-than-expected-ceo-sees-return-growth-2024-05-02/
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