Apple (AAPL.US) gains 7.50% after announcing better-than-expected financial results for the second quarter of the 2023/2024 fiscal year. Total sales revenue was $90.8 billion, exceeding expectations of $89.99 billion. Nonetheless, the results are record-breaking in other metrics, such as the services segment ($23.9 billion) and diluted earnings per share ($1.53).
Summary of the results:
- Net sales amounted to $90.8 billion, a 4% year-over-year decrease compared to $94.8 billion in Q2 2023.
- Services revenue: $23.9 billion versus $20.9 billion in Q2 2023.
- Product revenue: $66.9 billion versus $73.9 billion in Q2 2023.
- Gross profit was $42.3 billion, a slight increase from $42 billion in the previous year, reflecting the company's good condition despite declining revenues.
- Earnings per share (EPS) was $1.53, the same as a year ago.
- Diluted EPS: $1.53 versus $1.52 a year ago.
- Geographical segment performance:
- North and South America: $37.3 billion versus $37.8 billion last year.
- Europe: $24.1 billion versus $23.9 billion last year.
- China: $16.4 billion versus $17.8 billion last year.
- Japan: $6.3 billion versus $7.2 billion last year.
- Rest of Asia and Pacific: $6.7 billion versus $8.1 billion last year.
- Share buyback and dividend: Apple announced an additional $110 billion for share buyback and increased the quarterly dividend by 4%.
Apple CEO Tim Cook emphasized the launch of Apple Vision Pro, the company's growing focus on spatial computing (AR, VR, MR, etc.), and upcoming events, such as a new product announcement next week and the Worldwide Developers Conference next month. Apple's CFO Luca Maestri highlighted the high level of customer satisfaction and loyalty, resulting in a record number of installed devices across all products and regions.
Category sales summary:
- iPhone: $45.96 billion compared to $51.33 billion in Q2 2023.
- Mac: $7.45 billion, a slight increase from $7.17 billion in Q2 2023.
- iPad: $5.56 billion in the second quarter of 2024, down from $6.67 billion in Q2 2023.
- Wearables, Home, and Accessories: $7.91 billion compared to $8.76 billion in Q2 2023.
- Services: $23.87 billion compared to $20.91 billion in Q2 2023.
Despite weaker performance in some segments, investor attention is primarily on the high product margin, solid EPS results, and the announcement of a higher dividend and stock buyback. The company's results exceeded market expectations. Apple gains 7.50% to $186 in after-hours trading.
Source: xStation 5.
