Apple Soars After iPhone, China Sales Drop Less Than Feared; Unveils Record-Breaking $110 Billion Buyback
Apple Soars After iPhone, China Sales Drop Less Than Feared; Unveils Record-Breaking $110 Billion Buyback With most of the megatechs having already released earnings, all eyes were on the last Mag7 to report during the heart of earnings season (there is still Nvidia, but due to a calendar quirk that’s not for a month) which is also the company which until recently was the undisputed market cap world champion until it was overtaken by the mAIcrosoft juggernaut: Apple. Having failed to enjoy the same AI-driven euphoria some of its giga cap peers, Apple stock had languished for months and was in fact relegated by Goldman recently to the Meh 3 (AAPL, GOOGL, TSLA) and away from the Fab 4 (META, NVDA, MSFT, AMZN). But much of that was recovered after hours when AAPL not only reported blowout earnings but unveiled a massive, record-breaking $110 billion stock buyback program (because when your best product is the 5 pound neck brace known as the Vision Pro you have no choice but to buy your own stock since nobody else will do it for you) which sent the stock soaring after hours. Here is what AAPL reported for the quarter ended March 31: EPS $1.53 vs. $1.52 y/y, and beating the estimate $1.50 Revenue $90.75 billion, down 4.3% y/y primarily on China weakness, but beating the recently lowered estimate of $90.33 billion Products revenue $66.89 billion, -9.5% y/y, just missing the estimate $66.95 billion IPhone revenue $45.96 billion, -10% y/y, beating estimate $45.76 billion Mac revenue $7.45 billion, +3.9% y/y, beating the estimate $6.79 billion IPad revenue $5.56 billion, -17% y/y, missing estimate of $5.91 billion Wearables, home and accessories $7.91 billion, down 9.6% y/y, and badly missing estimate $8.29 billion now that the Vision Pro is a confirmed flop Service revenue $23.87
