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Apple (AAPL) Tops Q2 EPS by 4c; New $100 Billion Share Repurchase

May 1, 2018 4:30 PM

(Updated - May 1, 2018 4:33 PM EDT)

Apple (NASDAQ: AAPL) reported Q2 EPS of $2.73, $0.04 better than the analyst estimate of $2.69. Revenue for the quarter came in at $61.1 billion versus the consensus estimate of $60.98 billion.

The company sold 52.217 million iPhone units in the quarter, versus the consensus of 53 million. The company solid 9.113 million iPad units and 4.078 Mac units. Services revenue was up 31% year-over-year to $9.19 billion.

The company also announced a new $100 billion share repurchase authorization and the dividend was raised by 16 percent.

“We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables,” said Tim Cook, Apple’s CEO. “Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan.”

“Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our US operations and work toward a more optimal capital structure. Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization and a 16 percent increase in our quarterly dividend.”

The Company will complete the execution of the previous $210 billion share repurchase authorization during the third fiscal quarter.

Reflecting the approved increase, the Board has declared a cash dividend of $0.73 per share of Apple’s common stock payable on May 17, 2018 to shareholders of record as of the close of business on May 14, 2018.

The Company also expects to continue to net-share-settle vesting restricted stock units.

Apple is providing the following guidance for its fiscal 2018 third quarter:

• revenue between $51.5 billion and $53.5 billion• gross margin between 38 percent and 38.5 percent• operating expenses between $7.7 billion and $7.8 billion• other income/(expense) of $400 million• tax rate of approximately 14.5 percent

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

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