Apple’s stock surged in after-hours trading on Thursday following the announcement of its fiscal second-quarter earnings, which surpassed analysts’ expectations.
The company reported a revenue of $90.75 billion for the quarter, a slight decrease of 4% compared to the same period last year but exceeding the predictions of financial experts.
Net income stood at $23.64 billion, a modest 2% decline from the previous year.
A significant highlight of Apple’s performance was its record-breaking revenue from services, totaling $23.87 billion, marking a notable 14% increase compared to the same period in the preceding year.
This growth in Services revenue played a pivotal role in driving the company’s overall performance beyond market forecasts.
| 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 |
Moreover, Apple unveiled a substantial $110 billion share buyback program, signaling confidence in its financial position and commitment to returning value to shareholders.
Additionally, the company announced a 4% increase in its quarterly dividend, now set at 25 cents per share.
Luca Maestri, Apple’s Chief Financial Officer, attributed the company’s robust performance to its unwavering focus on customer satisfaction and loyalty, which has propelled its active installed base of devices to an all-time high across all product categories and geographic segments.
Maestri also highlighted that this stellar performance led to a new earnings per share (EPS) record for the March quarter.
Despite the overall positive results, Apple experienced a decline in iPhone sales, with revenue from iPhone sales dropping to $45.96 billion in the latest quarter from $51.33 billion in the same period last year.
Similarly, the company’s Greater China business segment reported a decrease in revenue, recording $16.73 billion compared to $17.81 billion in the previous year’s quarter. These figures underscored ongoing concerns about iPhone sales and market challenges in China.
Following the earnings report, Apple’s stock price surged by 6% to reach $183.46 in after-hours trading at approximately 7:30 p.m. Eastern Time.
The stock had experienced a 10% decline year-to-date, mainly attributed to apprehensions surrounding iPhone sales performance and market dynamics in China.
