Apple (NASDAQ: AAPL) stock jumped over 6% in pre-market trading Friday after reporting revenue and earnings above analysts’ estimates driven by a record-high Services revenue.
Apple (AAPL) has announced better-than-expected fiscal second-quarter earnings, alongside a significant $110 billion stock buyback program.
The tech giant reported second-quarter revenue of $90.8 billion for fiscal 2024. This figure marks a 4% year-over-year decrease and beats analysts’ estimates. Net income came in at $23.64 billion, down marginally from $24.16 billion in the same quarter last year, with diluted earnings per share (EPS) showing a slight increase. Both metrics beat analysts’ forecasts.
Apple also posted record-high Services revenue of $23.87 billion, representing a 14% jump from the year-ago period.
Moreover, Apple announced a $110 billion share buyback program and raised its quarterly dividend by 4% to 25 cents, signaling its commitment to returning value to shareholders.
Luca Maestri, Apple’s Chief Financial Officer (CFO), emphasized the company’s high levels of customer satisfaction and loyalty, highlighting the achievement of a new all-time high in the active installed base of devices across all products and geographic segments. Maestri also noted that the strong business performance led to a new EPS record for the March quarter.
Despite overall positive results, Apple saw a decline in iPhone sales, with revenue dropping to $45.96 billion in the latest quarter from $51.33 billion a year ago. The company’s Greater China business segment, closely monitored by investors, posted revenue of $16.73 billion, compared to $17.81 billion in the year-earlier quarter.
Apple (NASDAQ: AAPL) Stock Reaction
AAPL stock rose 2.20% to close at $173.03 on Tuesday. Its value has increased by 1.85% this week. Trading activity has witnessed 82,547,837 (82.54 million) shares changing hands, well above the average daily volume of 61.72 million.
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