:max_bytes(150000):strip_icc()/GettyImages-2147925347-3ad5b6a74fff4f8ca2ef2ca40d3de29b.jpg "Apple Stock Jumps on Better-Than-Expected Earnings, $110 Billion Buyback Program")
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Key Takeaways
- Apple shares jumped in extended trading Thursday after the company announced revenue and earnings that beat analysts’ estimates driven by record-high Services revenue.
- The company’s fiscal second-quarter revenue fell 4% to $90.75 billion, while net income slipped 2% to $23.64 billion. Apple reported record-high Services revenue at $23.87 billion, a 14% year-over-year increase.
- The company also announced a $110 billion share buyback program and increased its dividend by 4% to 25 cents per share.
Apple (AAPL) shares jumped in extended trading Thursday after the company reported better-than-expected fiscal third-quarter earnings and announced a $110 billion stock buyback program.
The company’s revenue for the second quarter of fiscal 2024 was $90.75 billion, a 4% decline from the year-ago period but slightly above analysts’ expectations. Net income of $23.64 billion was down from $24.16 billion in the year-earlier quarter, while diluted earnings per share (EPS) were up slightly. Both earnings numbers topped analysts’ estimates.
Apple also reported record-high Services revenue at $23.87 billion a 14% jump from the year-ago period.
| Q2 FY 2024 | Analyst Estimates for Q2 FY 2024 | Q2 FY 2023 | |
| Revenue | $90.75 billion | $90.36 billion | $94.84 billion |
| Diluted Earnings Per Share | $1.53 | $1.50 | $1.52 |
| Net Income | $23.64 billion | $23.26 billion | $24.16 billion |
Apple also announced a $110 billion share buyback program and raised its quarterly dividend by 4% to 25 cents.
“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter,” Apple Chief Financial (CFO) Officer Luca Maestri said in the earnings release.
Apple’s closely watched iPhone sales dropped to $45.96 billion in the latest quarter from $51.33 billion a year earlier. The company’s Greater China business, another segment closely monitored by investors, posted revenue of $16.73 billion, versus $17.81 billion in the year-earlier quarter.
Apple shares were up 6.8% at $184.76 at around 5:30 p.m. ET. Through Thursday’s close, the stock had lost 10% of its value so far this year amid concerns about the state of the iPhone business and weakness in China.