Apple announces biggest share buyback of $110 bn, March quarter results exceed estimates | Key points

Big Tech firm Apple has announced a share buyback of $110 billion – the highest in the history of US stock market – following the release of its second quarter (January-March 2024) results that exceeded expectations.

In its post-earnings announcement on May 2, Apple told the American bourses that its board has approved an additional $110 billion in share repurchases. This has surpassed the iPhone-maker’s last record high share buyback of $100 billion in 2018.

The decision was disclosed by the company even as its stock continues to edge lower at the markets this year. The shares have declined 10% year-to-date, whereas S&P 500 has gained by 6% in the same period.

Following the share buyback announcement, Apple’s stock gained by around 7% during the extended trading session on Nasdaq.

Here are five key points on Apple’s Q2 results:

• Apple was expected to go through a strained quarter, due to a high-base effect and slump in the global smartphone market. However, the company posted earnings better than analysts’ estimates. The revenue during the January-March period fell 4% year-on-year to $90.8 billion, but exceeded the projection of $90.01 billion, as shared by LSEG.

• The company reported a net net income of $23.64 billion or $1.53 per share, lower by 2% as compared to $24.16 billion or $1.52 per share, in the March 2023 quarter. Despite the 2% drop, it was higher than the consensus estimate of $1.50 a share.

• The revenue earned through the sale of iPhones, the company’s top-selling product, declined 10% year-on-year to $45.96 billion. This was almost in line with the analysts’ estimate of $46 billion. The sale numbers are still viewed positively, as Apple had, in the year-ago quarter, realised $5 billion in delayed iPhone sales due to Covid-related snarls.

• While Apple has not released the forward guidance for June quarter, CEO Tim Cook said the revenue is expected to grow in “low-single digits”. The Wall Street expects iPhone-maker’s revenue to rise by 1.3% to $829 billion, as per the data shared by LSEG.

• According to Apple CFO Luca Maestri, revenue through services and sales of iPad is expected to increase in double-digits during the June quarter. In the March quarter, the company clocked $5.6 billion through iPad sales, and $23.9 billion through its services segment.