Apple tops estimates on stronger iPhone sales; Goldman says stock remains 'attractive'

Investing.com -- Apple reported Thursday fiscal first-quarter results that topped estimates, driven by stronger-than-expected iPhone sales. The tech giant also boosted its dividend and announced a $90 billion share buyback program.

Apple Inc (NASDAQ: AAPL) shares trade over 2% following the report.

Apple announced earnings per share of $1.54 on revenue of $94.8B. Analysts polled by Investing.com anticipated EPS of $1.43 on revenue of $92.9B.

iPhone revenue, which makes up more than half of total revenue, rose to $51.33 billion from $50.57B a year earlier, topping estimates of $48.84 billion.

Revenue from Apple’s service business including Apple TV+ and iCloud, climbed to $20.91 billion from $19.8 billion a year earlier, beating estimates of $20.97 billion.

"We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high," Apple CEO Tim Cook said in the earnings report.

Wearables, home and accessories generated $8.76B in revenue, down from $8.81B.

The company unveiled a $90B share buyback plan and boosted its quarterly dividend by 4.3% to 24 cents per share, up from 23 cents.

Goldman Sachs analyst Michael Ng raised the price target to $209 per share on Buy-rated AAPL stock after "strong" results.

"We gain confidence in our Buy rating and believe AAPL shares continue to be attractive."

KeyBanc analyst Brandon Nispel also hiked the price target, $180 per share from the prior $177, as Emerging Markets strength offloaded weaker U.S. results.

"With records being set on the installed base of active devices across all geographies and all product categories, we believe investors are likely to continue to look past the noise of quarterly results as AAPL is likely more resilient to macro than it has ever been," Nispel wrote in a note.

Additional reporting by Senad Karaahmetovic

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