Apple Jan-March revenue up 16% at $61 bn; plans $100 bn buy-back
03 May 2018
Apple Inc, the maker of iPhones and iPads, today reported a 16 per cent increase in its quarterly revenue to $61.1 billion for the period ended 31 March 2018 boosted by a big jump in its overseas sales.
International sales accounted for 65 per cent of the quarter’s revenue as smartphone craze continued to grip emerging economies.
The company’s earnings per share for fiscal second quarter ended 31 March 2018 were up 30 per cent at $2.73, up from $2.10 a year ago.
Apple raised its dividend outlay by 16 per cent and also announced a new $100 billion share repurchase authorisation. Apple bought $23.5 billion of stock in the March quarter.
“We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables,” said Tim Cook, Apple’s CEO. “Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20 per cent growth in Greater China and Japan.”
“Our business performed extremely well during the March quarter, as we grew earnings per share by 30 per cent and generated over $15 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our US operations and work toward a more optimal capital structure. Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorisation and a 16 per cent increase in our quarterly dividend.”
The company will complete the execution of the previous $210 billion share repurchase authorisation during the fiscal third quarter.
Reflecting the approved increase, the board has declared a cash dividend of $0.73 per share of Apple’s common stock payable on 17 May 2018 to shareholders on record as of the close of business on 14 May 2018.
The company also expects to continue to net-share-settle vesting restricted stock units.
From the inception of its capital return program in August 2012 through March 2018, Apple has returned $275 billion to shareholders, including $200 billion in share repurchases. The management team and the Board will continue to review each element of the capital return program regularly and plan to provide an update on the program on an annual basis.
Apple expects revenue between $51.5 billion and $53.5 billion in the next quarter.
Apple, which also operates services like Apple Music, the App Store and iCloud, is planning a $30 billion spending in the US and a second US campus. The company will also be paying $38 billion in foreign cash taxes.