Apple (AAPL) Misses Q2 EPS by 10c
Apple (NASDAQ: AAPL) reported Q2 EPS of $1.90, $0.10 worse than the analyst estimate of $2.00. Revenue for the quarter came in at $50.6 billion versus the consensus estimate of $51.97 billion.
The company sold 51.193 million iPhone units, versus the consensus of 50 million. The compares to 74.78 million units sold in Q1 2016 and 61.17 million units sold in Q2 of 2015.
The company sold 10.251 million iPad units versus 12.62 million last year and 4.034 million Mac units versus 4.56 million last year.
Apple sees Q3 2016 revenue of $41-43 billion, versus the consensus of $47.32 billion.
The Company also announced that its Board of Directors has authorized an increase of $50 billion to the Company’s program to return capital to shareholders. Under the expanded program, Apple plans to spend a cumulative total of $250 billion of cash by the end of March 2018.
“We generated strong operating cash flow of $11.6 billion and returned $10 billion to shareholders through our capital return program during the March quarter,” said Luca Maestri, Apple’s CFO. “Thanks to the strength of our business results, we are happy to be announcing today a further increase of the program to $250 billion.”
As part of the updated program, the Board has increased its share repurchase authorization to $175 billion from the $140 billion level announced last year. The Company also expects to continue to net-share-settle vesting restricted stock units.
The Board has approved an increase of 10 percent to the Company’s quarterly dividend, and has declared a dividend of $.57 per share, payable on May 12, 2016 to shareholders of record as of the close of business on May 9, 2016.
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