Apple, a leading consumer electronics company, exceeded Wall Street’s expectations for its fiscal second quarter as reported on Thursday. The company also announced an increase in its quarterly dividend and stock buyback plan, leading to a rise in Apple’s stock value in after-hours trading.
During the quarter ending on March 30, Apple earned $1.53 a share on revenue of $90.8 billion, slightly surpassing analyst estimates of $1.51 a share on $90.4 billion in revenue. Compared to the previous year, Apple’s earnings increased slightly while sales decreased by 4%. The company also raised its dividend by 4% to 25 cents per share and approved a $110 billion share repurchase plan.
Hardware sales for Apple decreased by 10% year over year to $66.9 billion, while services revenue reached a record high of $23.9 billion, rising by 14%. Looking ahead to the June quarter, Apple expects total revenue to increase by a low single-digit percentage rate, with iPad sales projected to grow at a double-digit rate and services growth to be in the double digits.
In after-hours trading, Apple stock surged by 6.8% to $184.78. Year-to-date, Apple stock had experienced a 10% decline due to challenges such as weak sales in China and a mature smartphone market. Despite these obstacles, the company’s revenue from iPhone sales, Mac computer sales, and sales from wearables, home, and accessories remained significant contributors to its overall revenue.