Apple (AAPL) Stock Price Surges After Second Quarter Results
Shares of Apple (AAPL) surged by 1.54 percent to $134.69 in after-hours trading on Monday after the company reported its second quarter financial results. The company announced a quarterly revenue of $58 billion and a capital return program of $200 billion. The company’s cash pile now hits an all-time high at $194B, becoming the largest payer of dividends among companies.
iPhone, Mac and App Store
Apple on April 27 announced financial results for its fiscal 2015 second quarter that ended March 28, 2015. The company declares quarterly revenue of $58 billion and quarterly net profit of $136 billion, or $2.33 per diluted share. According to Apple, the growth in revenue was brought by record quarter sales of iPhone and Mac and all-time record performance of the App Store.
“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever. We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch,” Tim Cook, Apple’s CEO, said in the company’s announcement.
“The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27 percent and EPS growth of 40 percent. Cash flow from operations was also outstanding at $19.1 billion,” Luca Maestri, Apple’s CFO, added during the announcement.
$200 Billion Capital Return Program
Apple also announced a capital return program of $200 billion, an increase of more than 50 percent to its program to return capital to shareholders. Its board has increased its share repurchase authorization to $140 billion, boosting its quarterly dividend by 11 percent at $.52 per share payable on May 14 2015.
“We believe Apple has a bright future ahead, and the unprecedented size of our capital return program reflects that strong confidence. While most of our program will focus on buying back shares, we know that the dividend is very important to many of our investors, so we’re raising it for the third time in less than three years,” Cook said.
$194B in cash pile
Apple has $33 billion in cash and short-term investments and $160.4 billion in long-term investments. The company now has $194 billion in cash and investments more than any other company in the S7P, according to USA Today. This also makes Apple richer in cash and investments than Microsoft and Google combined, the report said.
Also read:Before Apple Watch Launch, Google Announces Android Wear Updates
You might be interested: Overdue Kate Middleton Maybe Induced For Royal baby Number 2