Updated May 3rd, 2024 at 07:38 IST

Apple announces biggest $110 billion share buyback after quarterly earnings beat estimates

The strong performance suggests that Apple may be regaining ground in the smartphone market despite challenges from competitors and regulatory pressure.

Reported by: Business Desk
Apple smartphone user | Image:Pexels
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Apple’s record buyback: Apple surpassed expectations with its quarterly results and outlook, announcing a record $110 billion share buyback program that drove its stock up 6 per cent in after-hours trading. The tech giant increased its cash dividend by 4 per cent and revealed plans to repurchase $110 billion worth of stock, marking its largest buyback program to date.

Although Apple's quarterly revenue declined, it did so less than anticipated by analysts. CEO Tim Cook expressed optimism, stating that revenue growth is expected to rebound in the current quarter.

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The strong performance suggests that Apple may be regaining ground in the smartphone market despite challenges from competitors and regulatory pressures.

Following the report, Apple's shares surged, boosting its market value by over $160 billion.

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In the fiscal second quarter, Apple's revenue dipped 4 per cent to $90.8 billion, exceeding the average analyst estimate of $90.01 billion.

For the current quarter ending in June, Apple anticipates low-single-digit revenue growth, surpassing Wall Street's expectation of 1.33 per cent growth to $82.89 billion.

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Despite facing challenges in the smartphone market and regulatory scrutiny, Apple remains optimistic about its services and iPad segments, expecting double-digit revenue growth.

Analysts had projected a decline in Mac sales for the fiscal second quarter, but they instead grew to $7.5 billion, driven by the popularity of the new MacBook Air featuring the M3 chip.

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However, sales in the iPad and wearables segments fell short of analyst expectations.

Overall, Apple's quarterly earnings per share exceeded Wall Street estimates, signaling a robust performance despite industry challenges and regulatory headwinds.

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(With Reuters inputs)

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Published May 3rd, 2024 at 07:38 IST