Apple GAAP EPS of $1.52 beats by $0.09, revenue of $94.84B beats by $2B, raises dividend, announced $90B buyback

• Apple press release (NASDAQ:AAPL): Q2 GAAP EPS of $1.52 beats by $0.09.
• Revenue of $94.84B (-2.5% Y/Y) beats by $2B.
• Shares +2.2%.
• Net sales by category: iPhone: $51.33B (1.5 Y/Y %); Mac: $7.17B (-31.3 Y/Y %); iPad: $6.67B (-12.7 Y/Y %); Wearables, Home and Accessories: $8.75B (-0.7 Y/Y %); Service: $20.9B (5.4 Y/Y %)
• Apple’s board of directors has declared a cash dividend of $0.24 per share of the Company’s common stock, an increase of 4 percent. The dividend is payable on May 18, 2023 to shareholders of record as of the close of business on May 15, 2023.
• The board of directors has also authorized an additional program to repurchase up to $90 billion of the Company’s common stock.
• Note: "An earlier version of this article misstated some figures."

Comments

[coolcatnip]

the iPhone Pro may have a limited audience because of cost in India, but there is a tremendous opportunity available in the refurbish market of phones 3-4-5 years old that can get many millions into the family of apps and services with higher margins, a young demo with years of commerce ahead.

[DutchGuy2]

Total revenue and total profit both shrinking by 3% versus Q1 2022, in a high inflation environment..

PE stagnant due to share buybacks.. betting that Indians buy a phone for the price of a small car..

[Majestic Alex]

@DutchGuy2 India revenue is still small, but growing rapidly. Might be bigger than China in the end.

[metoo5]

@DutchGuy2 - You're ignoring cyclicality of revenue qtr to qtr. That's a highly short-term outlook.

Apple annual free cash flow for 2022 was $111B, a 19.89% increase from 2021. Apple annual free cash flow for 2021 was $93B, a 26.7% increase from 2020. And they return 92% of the FCF to shareholders.

www.epsilontheory.com/...

[allroundr]

I don’t like foldable phones, but I’m 1st in line for 🍏flip phone (yes, there’s a diff).

[PDXGuy]

Here’s how the (Apple) company did versus Wall Street expectations per Refinitiv consensus expectations:

EPS: $1.52 per share vs. $1.43 expected
Revenue: $94.84 billion vs. $92.96 billion expected
Gross margin: 44.3% vs. 44.1% expected
Apple reported $24.16 billion in net income during the quarter compared to $25.01 billion in the year-earlier period. Total revenue was off 3% from $97.28 billion in the prior quarter.

Here’s how Apple’s individual product lines did versus StreetAccount consensus expectations:

iPhone revenue: $51.33 billion vs. $48.84 billion expected
Mac revenue: $7.17 billion vs. $7.80 billion expected
iPad revenue: $6.67 billion vs. $6.69 billion expected
Other Products revenue: $8.76 billion vs. $8.43 billion expected
Services revenue: $20.91 billion vs. $20.97 billion expected
Apple didn’t provide formal guidance, continuing its practice that dates back to 2020 and the start of the Covid-19 pandemic. Management typically provides some data points on a call with analysts.

[dave403]

But, but, but…. All the channels say they’re in bad shape!!!

[coolcatnip]

@dave403 Dan Nathan is especially sour pussed , he must have gotten his negativeazz really kicked..the informed retail investors have taken the ball out of the hands of these so called influencers who when you stop and think about it make a living out of talking down the markets, they're only really positive when they're playing catch up and late to the party...imo

[GERARDO15]

@coolcatnip - Dan Nathan and most of the CNBC talking heads are disguised Hedge Funds employees!! Blessed

[Klaus-77]

Another beat in the wall

[oluadroit]

90 f##Kin B buyback?

[schwagnasty]

@oluadroit what is the quick version of what this means?

[lbeachmike]

@schwagnasty When they buy back shares, things like EPS increase slightly because the denominator gets smaller.

[oluadroit]

@schwagnasty also helps investors as they won't have to pay tax if it were to be paid as dividend

[monster94]

Looks stagnant like most stocks with a premium valuation. Knowing this market, it’ll probably pop tomorrow cause AI and stock buybacks.

[6824615]

@monster94

I’m waiting for the conference call hoping to hear that they will use AI to do buybacks.

I will report back later.

[monster94]

@6824615 😆😆

[TopGun2]

@6824615 make sure ever second word is supported with efficiencies

[djmv215]

No growth so far this year. very flat and stock is extremely expensive. SELL SELL tomorrow

[Illuminati Investments]

@djmv215 Their two biggest businesses were up 1.5% and 5.4%, respectively.

[milehr]

@djmv215 --SELL SELL tomorrow--

I doubt the market will hear your cries. You should have bought it at 125 not so long ago:-)

[Dark Samus]

@djmv215 too many insecure AAPL mindless followers on here who will attack u while weeping

[Michael777]

I lightened up on this awhile ago. I am comfortable holding what I have long term. The PR was fine in my humble opinion.

[iceman7135]

Don’t bet against Apple. Ever. It’s also a Consumer Staples company and trades right in line with those valuations. Get it?

[Dale Roberts]

Glad I already own it from 2014. Perhaps I'll never get to add at fair valuation.

No worries.

[Diesel]

People try to justify lack of growth saying "we are in a recession". Then why is stock not priced like we are in a recession? Stock is still priced as if the economy is booming and they are growing 10-12% per year.

[Carl Diamond]

@Diesel Retail company 30x maybe at 10% unemployment and rates cut to 0. No value it’s a fed tool to pump up the markets people don’t understand. 50-70 maybe not a dime more i still wouldn’t like the valuation

[milehr]

@Diesel
A mistery, isn't it?

[honestjohn1]

@Diesel, when a co gets this big, a 1.5% or $1 billion in growth is what other co's wish they could get, and expecting 10% at this stage isn't going to happen.

[ithinking]

iPhone YOY is only 1.5% - the cell phone market is really saturated. How could APPL deserve such valuation is beyond my comprehension.

[TopGun2]

@ithinking growth is less then Walmart. Walmart must be high tech

[Talarion1979]

@TopGun2 HD and LOWE grow way faster since 5 yrs, must be ultra tech. But hey, at least Apple raises the dividend. The very low yield dividend by single digit. Ok….stock buyback. If they buyback at that prices…insane.

[TopGun2]

@Talarion1979 agreed, but stock buyback is not mandatory. They can wait indefinitely or only do a few. It is usually meaningless. It just sounds good.

[cpraderas]

Tim Cook commentary is going to be very important today

[Amos Tuck]

Aren't companies trading at 30X supposed to grow revenues?

(Yes, they are.)

With rates at these levels, Apple should be trading at 20X.

(I'm being generous.)

I'd hit the bid before the stock trades back to $129!

[outofbounds]

@Amos Tuck your comments aren’t even clever. The 120s are long gone

[jacob1]

@Amos Tuck Funny

[TopGun2]

@Amos Tuck, you are way too logical. The casino market is delusional, and so are the analyst

[rutleyh]

Love the additional buy back.

[rutleyh]

The rev number is impressive given all the issues over the last several months.

[PDXGuy]

Apple ER is as solid as iphone 👍

[colorado buff]

Wow their services are going to be more than wearables, ipads and Mac’s soon. Good for them.

[davel]

@colorado buff
This is why the pe changed a few years ago