Record quarter for Apple as it beats on both revenue and profit. The company declares a dividend hike and increases its share repurchase program.
Yesterday was Apple’s turn to release its earnings for the first three months of the year. Market participants expected good results in line with other tech giants, and Apple easily beat the expectations this week.
The company announced record revenue of almost $89.6 billion for the quarter, up a whopping 54% year-over-year (YOY). International sales accounted for 67% of this revenue, demonstrating the global powerhouse that Apple is.
Good News Continues for Apple Shareholders
Apple delivered record revenue in each of its geographic segments, fueled by strong iPhone sales that topped $47.9 billion (against $40.8 billion expectations). Mac sales also exceeded expectations, coming in at a solid $9.1 billion (against the expected $6.9 billion).
This was a record quarter for a good dividend-paying company that increased its dividend by 7% to $0.22-per-share. To put this in perspective, Warren Buffett’s Berkshire Hathaway investment vehicle — a long-term Apple investor — will bring in $53 million more income as a result.
Apple also announced an increase of $90 billion on its existing share buyback program. This is as bullish a signal as it can be, for at least a couple of reasons:
First, the company considers its shares to be undervalued, which is logical considering the record quarter.
Second, the $90 billion amount is so big that it dwarfs anything posted by other companies.
Bears will have a hard time pushing the market down when $90 billion is sitting on the sidelines ready for any opportunity to buy the dip. Unsurprisingly, Apple’s shares were seen higher pre-market, up by about 3%. The share price is flat year-to-date but is up over 91% in the last twelve months.
Once again, the US tech sector has posted impressive results, helped by the pandemic and the subsequent shift in consumer behavior toward online services.