Published: May 4, 2023 4:42 pm ET
Apple Inc. Its iPhone business on Thursday posted surprise growth in the first three months of the year, with Mac overcoming a shortfall in revenue as the company promised investors billions in dividends and share buybacks.
Apple AAPL shares rose 1% to 2% in after-hours trading immediately after the results.
The…
Apple Inc. Its iPhone business on Thursday posted surprise growth in the first three months of the year, with Mac overcoming a shortfall in revenue as the company promised investors billions in dividends and share buybacks.
Apple
APL
Shares rose 1% to 2% in after-hours trading immediately after the results.
The company reported fiscal second-quarter revenue of $94.8 billion, down from $97.3 billion a year ago, while analysts were expecting $92.9 billion. Revenue for the iPhone category rose to $51.3 billion from $50.6 billion, while analysts polled by FactSet had expected a decline to $48.7 billion.
Apple reported net income of $24.2 billion, or $1.52 per share, compared to $25 billion, or $1.52 per share, in the year-ago quarter. Analysts modeled average earnings of $1.43 a share per FactSet.
Apple’s results come amid concern about the state of consumer-electronics spending, given troubling third-party data points and cautious signals from players such as Qualcomm Inc.
QCOM
and DuPont de Nemours Inc.
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The company saw steep revenue declines in both the iPad and Mac categories. Sales of iPads fell to $6.7 billion from $7.6 billion and matched the FactSet consensus. Mac revenue fell to $7.2 billion from $10.4 billion, compared with analysts looking for $7.8 billion.
Apple’s wearables, home and accessories categories were flat, with sales of $8.8 billion. The FactSet consensus called for $8.4 billion. The services segment showed growth with revenue of about $19.8 billion to $20.9 billion, in line with the FactSet consensus of $21.0 billion.
Also See: Qualcomm stock falls as Apple iPhone inventory support contributes to weak outlook
Apple on Thursday announced a $90 billion increase in its buyback program, while also raising its quarterly dividend by 4% to 24 cents. That compares with a $90 billion increase a year ago for stock repurchase authorizations and a 5% dividend hike.
The company has not issued traditional guidance since the pandemic began, and it stuck with this practice in Thursday’s release. Executives may give more quality signals on the company’s earnings call that could determine the ultimate direction of Apple’s stock.
“The end result can simply be directed [fiscal third-quarter] “Despite a tough macro, investors can expect assurance and visibility to limited downside, even if there is confirmation that earnings declines will not worsen beyond the -5% figure already expected,” said JPMorgan’s Samik Chatterjee. In a note to clients before the report.
