Tech giant Apple (NASDAQ: AAPL), has released its earnings report for the second quarter of the 2019 fiscal year.
The results saw it post profits ahead of analysts’ call and in spite of declining year-over-year revenues, the AAPL stock surged to over 5% in after-hours trading.
For its second-quarter results, the Cupertino, CA-based company posted a net income of $11.6 billion. However, closing at $2.46 per share, this translates to a 15.9% drop compared to last years’ income of $2.73per share.
A FactSet survey of analysts determined that Apple’s earnings topped Wall Street’s agreed estimates of $2.36 a share. During this year’s second quarter, Apple earned revenue of $58 billion, which is a 5% drop from last year’s $61.1 billion over the same period.
The earnings surpassed Wall Street’s consensus estimate, $57.5billion as FactSet survey analysts had observed. During the same time, Apple was able to add $5.5 billion Mac revenue, services revenue of $4.9 billion, Wearables and home revenue totaling to $5.1 and also $11.5 billion in services revenue.
Another announcement also states that Apple’s board approved extra share repurchases worth $75 billion and its dividends went up by 5%. One share will cost 77 cents in the new quarterly dividend.
FactSet reports that iPhone revenue was able to meet the $31.1 billion Wall Street outlook though Apple has paused reports concerning iPhone unit sales.
On Tuesday, AAPL stock closed with a low of about 5.3% after the company posted its impressive quarterly earnings. During the regular trading hours, shares went down by 1.9%.
Among FAANG stocks- Facebook, Apple, Amazon, Netflix, and Alphabet (Google), AAPL is expected to continue its recent surge for the next couple of years, even as some analysts caution that tech stocks could tumble big time in due course.
Meanwhile, Apple is set to roar back into the phone market following uncertainties from the U.S./China trade wars that saw Huawei take up its market share. The iPhone maker has since settled with Qualcomm and could ride on the FQ2 reports that beat estimates and places it nicely for the third quarter.
Forecasts put the the fiscal year 2020 earnings per share (EPS) at around $14, helped by strong margins in iPhone sales and Services sector.