AAPL Shares Rise Over 2% After Earnings Report
Following the report, Apple Inc (NASDAQ: AAPL) shares experienced a trading increase of more than 2%.
Impressive Earnings and Revenue Figures for Apple
Apple announced earnings per share of $1.52 on revenue of $94.8B, surpassing analysts' expectations of an EPS of $1.43 and revenue of $92.9B, according to Investing.com.
iPhone Revenue Surpasses Expectations
iPhone revenue, which constitutes over half of Apple's total revenue, rose to $51.33 billion from $50.57B a year earlier, outperforming estimates of $48.84 billion.
Apple Service Business Revenue Grows
Revenue from Apple's service business, including Apple TV+ and iCloud, climbed to $20.91 billion from $19.8 billion a year earlier, slightly exceeding estimates of $20.97 billion.
Tim Cook's Comments on Record-Breaking Performance
Apple CEO Tim Cook expressed satisfaction with the record in services and a March quarter record for iPhone sales despite a challenging macroeconomic environment and the installed base of active devices reaching an all-time high.
Wearables, Home, and Accessories Revenue Declines
Revenue generated from wearables, home, and accessories was $8.76B, down from $8.81B the previous year.
Apple Announces $90B Share Buyback and Dividend Increase
The company revealed a $90B share buyback plan and raised its quarterly dividend by 4.3% to 24 cents per share, up from 23 cents.
Goldman Sachs and KeyBanc Raise Price Targets on AAPL Stock
Goldman Sachs analysts increased the price target to $209 per share on Buy-rated AAPL stock following the "strong" results, stating, "We gain confidence in our Buy rating and believe AAPL shares continue to be attractive." KeyBanc analysts also raised the price target to $180 per share from the previous $177, citing strength in emerging markets offsetting weaker U.S. results. They emphasized Apple's resilience to macroeconomic factors, with records being set for the installed base of active devices across all geographies and product categories.
