Apple Q2 Earnings: Iphone Sales Down 10%, $110 Billion Stock Buyback Announced -

Apple Q2 Earnings: Iphone Sales Down 10%, $110 Billion Stock Buyback Announced

May 02, 2024Jeremy ParkinsonFinance0

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Apple Inc (Nasdaq: AAPL) is trading up in extended hours on Thursday after coming in ahead of Street estimates for its fiscal second quarter.

iPhone revenue fell short of expectations
The stock is gaining even though iPhone did not do all that well in Q2.The flagship handset generated $45.96 billion in revenue in the recently concluded quarter (down 10% year-over-year) versus analysts at $46 billion. Tim Cook – the chief executive of Apple Inc said in a press release today:

We are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.

On the plus side, services revenue at $23.90 billion topped consensus at some $630 million. AAPL is now down just over 6.0% versus its year-to-date high.

Apple Q2 earnings snapshot

Earned $23.64 billion versus the year-ago $24.16 billion

Per-share earnings remained roughly unchanged at $1.53

Revenue inched down 4.0% to $90.75 billion as per the earnings report

Consensus was $1.50 a share on $90.01 billion in revenue

Apple Inc. saw its gross margin come in at 46.6% for the second quarter quarter – in line with estimates. Luca Maestri, its chief of finance said today:

Our active installed base of devices has reached a new all-time high across all products and all geographic segments.

NEW: 🍏 Apple in talks with OpenAI about integrating artificial intelligence into next iPhone – Bloomberg pic.twitter.com/9AaLA6MlWw

— Radar🚨 (@RadarHits) April 27, 2024

What else was noteworthy in AAPL earnings release

Mac revenue printed at $7.50 billion versus $6.86 billion expected

iPad revenue came in at $5.60 billion versus $5.91 billion expected

Other products generated billion in $7.90 sales versus $8.08 billion expected

Apple will likely offer guidance for its current quarter on the conference call that you can tune into on this link. Its chief executive also said on Thursday:

During Q2, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month

Apple boosts stock buyback
Also today, Apple authorised its biggest-ever stock repurchase of $110 billion. Last year, that authorisation stood at $90 billion.The board declared 25 cents a share of quarterly cash dividend on Thursday as well – an increase of about 4.0%.Note that our market analyst Ritesh A. recommends against buying AAPL at current levels. Wall Street, however, currently has a consensus “overweight” rating on Apple shares.More By This Author:Xpeng Reports A 33% Increase In Monthly Deliveries eBay Took A 23% Hit To Net Income In Its Fiscal Q1 Jim Cramer Has Lost Conviction In Starbucks CEO