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05/02/2024 |

Apple’s Epic Buyback Program

This is a photo of Apple CEO, Tim Cook.

Apple’s Pile Of Cash

Apple bulls got a surprise on today’s earnings call, with CEO Tim Cook announcing plans for a $110 billion buyback program, the largest in the company’s history and a new record in corporate repurchases. Additionally, they will increase their dividend payment by $0.01. Very generous, fellas.

Quarter End Results

Despite the impressive buybacks, the company faced challenges as overall sales dipped by 4%. iPhone, iPad, and other product revenues missed expectations while gross margins aligned with expectations. Here’s a breakdown:

  • EPS: $1.53 vs. $1.50 est.
  • Revenue: $90.75B vs. $90.01B est.
  • iPhone revenue: $45.96B vs. $56B est.
  • Mac revenue: $7.5B vs. $6.86B est.
  • iPad revenue: $5.6B vs. $5.91B est.
  • Other Products revenue: $7.9B vw. $8.08B est.
  • Services revenue: $23.9B vs. $23.27B est.
  • Gross margin: 46.6% VS. 46.6% est.

Looking Ahead

The company didn’t provide formal guidance, but CEO Tim Cook said overall sales would grow in the ‘low single digits’ during its next quarter. Additionally, he hinted at ‘big plans to announce’ at its iPad product event next week and its Worldwide Developers Conference in June. Many speculate that AI software innovations will be unveiled, but nothing has been officially confirmed.