By
Godfrey Benjamin
April 23rd, 2024
The company did not announce any guidance for the coming quarter.
American multinational technology giant Apple Inc (NASDAQ: AAPL) released its performance report for the second quarter ended March 26 this year. As published, revenue came in at $97.28 billion as against the $93.89 billion estimated by analysts. The revenue of Apple was up 8.59% year over year.
The revenue growth was also accompanied by positive performance metrics round the clock despite the company facing supply chain challenges like others in the global ecosystem which may cost it up to $8 billion in revenue. With the resilience Apple showed, CEO, Tim Cook said its efforts are being complemented by the drive towards Carbon Neutrality in its operations.
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” Cook said. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world – both in what we create and what we leave behind.”
Evidence of impressive performance was reflected in the company’s Earnings Per Share (EPS) for the quarter which came in at $1.52 compared to the $1.43 expected by analysts. The Cupertino-based firm saw $50.57 billion in iPhone revenue in the quarter, up 5.5% YoY and better than the $47.88 billion that was projected by analysts.
Almost all segments of the Apple business recorded a better than expected growth except revenue from other products which came in at $8.81 billion as against the $9.05 billion estimated. Even with these reduced expectations, the revenue from other products grew by 12.37% year over year.
Apple Revenue Guidance and Company’s Share Buyback
Following the impressive quarterly revenue recorded by the company, it was able to make a number of legacy investments including a $90 billion share buyback. The company doubled down on its share buyback which came in at $88.3 billion in 2021, maintaining its rank as the firm that takes off its own shares from the market the most.
Apple is a legacy and a profitable business as shown in its various business segments. Its move to switch from Intel chips and processors to its in-house developed versions is also helping it curb the semiconductor challenge that has continued to plague the entire industry. Amidst the broad challenges faced, however, the firm returned $27 billion to its shareholders as profits.
“We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter.”
Apple shares traded in the red in the pre-market by 2.71% to $159.20. The company did not announce any guidance for the coming quarter.