Last updated: May 4, 2023 at 5:29 pm ET
Originally published: May 4, 2023 at 4:42 pm ET
On Thursday, Apple Inc. After showing surprise growth in its iPhone business in the first three months of the year, Mac overcame a shortfall in revenue as the company promised investors billions in dividends and share buybacks.
Shares of Apple AAPL rose about 2% after trading amid the earnings call.
The company said…
On Thursday, Apple Inc. After showing surprise growth in its iPhone business in the first three months of the year, Mac overcame a shortfall in revenue as the company promised investors billions in dividends and share buybacks.
Apple
APL
Shares rose about 2% in after-hours trading amid the earnings call.
The company reported fiscal second-quarter revenue of $94.8 billion, down from $97.3 billion a year earlier, while analysts were expecting $92.9 billion. Revenue for the iPhone category rose to $51.3 billion from $50.6 billion, while analysts polled by FactSet had expected a decline to $48.7 billion.
“iPhone growth was driven by strong performance in emerging markets from South Asia and India to Latin America and the Middle East,” Chief Financial Officer Luca Maestri said on the earnings call.
Apple reported net income of $24.2 billion, or $1.52 per share, compared to $25 billion, or $1.52 per share, in the year-ago quarter. Analysts modeled average earnings of $1.43 a share per FactSet.
Apple’s results come amid concern about the state of consumer-electronics spending, given troubling third-party data points and cautious signals from players such as Qualcomm Inc.
QCOM
and DuPont de Nemours Inc.
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The company saw steep revenue declines in both the iPad and Mac categories. Sales of iPads fell to $6.7 billion from $7.6 billion and matched the FactSet consensus. Mac revenue fell to $7.2 billion from $10.4 billion, compared with analysts looking for $7.8 billion.
Apple’s wearables, home and accessories categories were flat, with sales of $8.8 billion. The FactSet consensus called for $8.4 billion. The services segment showed growth with revenue from about $19.8 billion to $20.9 billion, in line with the FactSet consensus of $21.0 billion.
“Some services such as digital advertising and mobile gaming continue to be affected by the current macroeconomic environment,” Maestri noted, although advertising, Apple Care and video generated revenue records in the March quarter.
Also See: Qualcomm stock falls as Apple iPhone inventory support contributes to weak outlook
Apple on Thursday announced a $90 billion increase in its buyback program, while raising its quarterly dividend by 4% to 24 cents. That compares with a $90 billion increase a year ago for stock repurchase authorizations and a 5% dividend hike.
While Apple stopped short of giving traditional guidance at the start of the pandemic, Maestri shared the call, expecting June-quarter revenue growth to be similar to that seen in the March quarter on a year-over-year basis, assuming a stable macroeconomic climate.
