- Apple reported second quarter earnings on Tuesday afternoon that beat analyst expectations..
- The stock popped more than 4% in after-hours trading.
- Follow Apple’s stock price in real-time here.
Here are the key figures:
- Revenue: $61.1 billion versus an expected $60.86 billion
- Earnings per share: $2.73 versus an expected $2.60
- iPhones sold: 52.2 versus an expected 51.9 million.
The company also announced a $100 billion share buyback in addition to boosting its dividend by 16% to $0.73 per share.
While sales of Apple’s iPhone did not deliver a big upside surprise, nor did they fall through the floor, as some worried they might.
“This is the first cycle we’ve had where the top-of-the-line iPhone model has also been the most popular,” Apple CEO Tim Cook said on a conference call with analysts on Tuesday.
The $1,000 iPhone X — Apple’s most expensive iPhone ever — was the best-selling phone “every week” during the quarter, Cook said. The comments come amid investor worries, fueled by negative press reports, that Apple’s high-priced flagship model was not selling well.
Although Cook would not provide specific sales figures for the iPhone X, he stressed that the performance should be viewed as a sign of strength regardless of the details.
“The team wins the Super Bowl, you want them to win by a few more points, but it’s a Super Bowl winner, and it’s how we feel about it,” Cook said during the call.
Apple also raised its guidance for the third quarter to between $51.5 billion and $53.5 billion, a range with a midpoint comfortably above the $51.6 billion average analyst forecast. In recent weeks, “whisper numbers” among some investors event anticipated that fiscal Q3 revenue could come in below $50 billion, according to a note by GBH Insights analyst Dan Ives, following Apple’s results.
“This guidance number was much better than feared and will be a “major relief” for the stock,” Ives wrote.
Shares of Apple have declined 1.6% since the beginning of 2018.
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