Apple (AAPL) Tops Q2 EPS by 8c, iPhone Units Miss; Raises Buyback, Div by 10.5%

(Updated - May 2, 2017 4:33 PM EDT)

Apple (NASDAQ: AAPL) reported Q2 EPS of $2.10, $0.08 better than the analyst estimate of $2.02. Revenue for the quarter came in at $52.9 billion versus the consensus estimate of $52.97 billion.

The company sold 50.763 million iPhone units in the quarter, below the consensus of 52 million.

“We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus,” said Tim Cook, Apple’s CEO. “We’ve seen great customer response to both models of the new iPhone 7 (PRODUCT)RED Special Edition and we’re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter. Looking ahead, we are excited to welcome attendees from around the world to our annual Worldwide Developers Conference next month in San Jose.”

Apple also announced that its Board of Directors has authorized an increase of $50 billion to the Company’s program to return capital to shareholders and is extending the program timeframe by four quarters. Under the expanded program, Apple plans to spend a cumulative total of $300 billion by the end of March 2019.

“We generated strong operating cash flow of $12.5 billion and returned over $10 billion to our investors in the March quarter,” said Luca Maestri, Apple’s CFO. “Given the strength of our business and our confidence in our future, we are happy to announce another $50 billion increase to our capital return program today.”

As part of the latest update to the program, the Board has increased its share repurchase authorization to $210 billion from the $175 billion level announced a year ago. The Company also expects to continue to net-share-settle vesting restricted stock units.

The Board has approved a 10.5% increase to the Company’s quarterly dividend, and has declared a dividend of $0.63 per share of the Company’s common stock, payable on May 18, 2017 to shareholders of record as of the close of business on May 15, 2017.

Apple is providing the following guidance for its fiscal 2017 third quarter:

• revenue between $43.5 billion and $45.5 billion (*** consensus is $45.6 million)

• gross margin between 37.5 percent and 38.5 percen

t• operating expenses between $6.6 billion and $6.7 billion• other income/(expense) of $450 million

• tax rate of 25.5 percent

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

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