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Apple, Inc. (AAPL) Tops Q2 EPS by $1.44; Announces 7-for-1 Stock Split

April 23, 2014 4:31 PM EDT

(Updated - April 23, 2014 4:35 PM EDT)

Apple, Inc. (NASDAQ: AAPL) reported Q2 EPS of $11.62, $1.44 better than the analyst estimate of $10.18. Revenue for the quarter came in at $45.6 billion versus the consensus estimate of $43.53 billion.

Apples sees Q3 revenue between $36 billion and $38 billion, versus the consensus of $37.87 billion. They see gross margin between 37 percent and 38 percent.

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.”

Separately, Apple announced that its Board of Directors has authorized another significant increase to the Company’s program to return capital to shareholders. The Company expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.

As part of the program, the Board has increased its share repurchase authorization to $90 billion from the $60 billion level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units.

Additionally, the Board has approved an increase to the Company’s quarterly dividend of approximately 8 percent and has declared a dividend of $3.29 per common share, payable on May 15, 2014 to shareholders of record as of the close of business on May 12, 2014. The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world.

The Board of Directors has also announced a seven-for-one stock split. Each Apple shareholder of record at the close of business on June 2, 2014 will receive six additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on June 9, 2014.

For earnings history and earnings-related data on Apple, Inc. (AAPL) click here.



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