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Apple Does the Tango

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Updated

Apple Inc. (NASDAQ: AAPL) is up over 2% in the after-hours trading session following the release of its Q2 2018 results. Here’s a breakdown of some notable statistics from the press release:

Metric Q2 2018 Q2 2017 Change
Revenue $61,137 million $52,896 million 15.6%
Gross margin $23,422 million $20,591 million 13.7%
EPS – diluted $2.73 $2.10 30.0%
Operating cash flow $43,423 million $39,804 million 9.1%

Here are five additional takeaways from the release:

  1. iPhone unit sales increased 2.9% to 52.22 million, and revenue from iPhone sales increased 14.4% to $38.03 billion.
  2. The results came in mixed compared with the consensus estimates, which called for $61.19 billion in revenue and $2.69 in EPS.
  3. It provided its outlook on the third quarter, calling for revenue in the range of $51.5 billion–$53.5 billion, which satisfied the consensus estimate of $51.72 billion.
  4. It raised its quarterly dividend by 15.9% to $0.73 per share, equating to $2.92 per share on an annualized basis.
  5. Its board of directors approved a new $100 billion share repurchase authorization, and it noted that it will complete the execution of its previous $210 billion share repurchase authorization during the third quarter.

There was a lot of negativity surrounding Apple going into the release, but the strong earnings, positive outlook, dividend increase, and share repurchase authorization seem to have ignited a relief rally.

Shares of Apple suppliers are also on the move in the after-hours session, with companies like Cirrus Logic Inc. (NASDAQ: CRUS) and Skyworks Solutions Inc. (NASDAQ: SWKS) each up over 2.5%.

Now the question is—will the rally hold tomorrow?

—JP

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