5 key takeaways from Apple’s Q2 earnings report

Apple Inc. (NASDAQ: AAPL) said on Wednesday it performed better-than-expected in the fiscal second quarter.

1. Financial performance

Apple reported £16.93 billion of net income in the second quarter that translates to £1.0 per share. In the same quarter last year, its net income was capped at a much lower £8.04 billion, or 45.92 pence per share.

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The American multinational valued its revenue in Q2 at £64.29 billion versus the year-ago figure of £41.83 billion. According to FactSet, experts had forecast the company to post £55.32 billion of revenue. Their estimate for per-share earnings stood at a lower 71.04 pence.

2. Sales from individual segments

Apple reported £34.37 billion of iPhone sales, £5.60 billion of iPads sales, £6.53 billion of iMacs sales, £5.60 billion of wearables, home and accessories sales, and £12.13 billion of services sales in Q2.

Revenue from all segments in the recent quarter was topped FactSet consensus. Earlier this week, Apple raised its U.S. spending target to £309 billion by 2026.

3. Dividend and share buyback

The tech giant declared 15.79 pence per share of dividend on Wednesday – a 7% increase. The board also authorised a £64.58 billion increase in the company’s share repurchase programme.

4. Future guidance

Apple refrained from giving its guidance for the current quarter on Wednesday due to the ongoing COVID-19 uncertainty. The Cupertino-based company hasn’t given guidance for revenue since the start of the health emergency.

5. CEO Tim Cook’s remarks

Apple’s chief executive Tim Cook told CNBC’s Josh Lipton:

“The App Store has been an economic miracle. Last year, the estimates are that there was over half a trillion dollars of economic activity because of the store. And so, this has been just an economic gamechanger for not only the United States but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident.”

Impact on the share price

Apple shares were reported about 2% up in extended trading on Wednesday. Including the price action, the stock is now exchanging hands at £97.62 per share. In comparison, it had started the year 2021 at a slightly lower £95.85 per share.

Apple performed largely upbeat in the stock market last year with an annual gain of close to 80%. At the time of writing, the American multinational technology company has a market capitalisation of £1.61 billion and a price to earnings ratio of 36.11.