Apple 2Q17 earnings news keep investors satiated
Apple has cemented its second fiscal quarter with net earnings in-line with analyst targets at $52.9 billion, a 5 percent improvement from last year. Gross margin was marked at 38.9 percent.
Stores sold 50.76 million iPhones from January to March deriving $33.25 billion in revenue, bringing raw average sales price per unit was $654. Year-on-year, results on both counts were flat.
The company also checked out 8.9 million iPads, a 13 percent decline, and about the same percentage loss in revenue. Mac sales saw a 4 percent uptick to 4.2 million units with a 14 percent jump in revenues, no doubt thanks to the new models that debuted in the fall. The “Other” category — which includes Apple TV, Apple Watch, Beats, iPods and accessories — saw a 31 percent hike in revenues.
Services are also up 18 percent year-on-year, though down 2 percent sequentially to $7.04 billion.
The company announced that it is expanding its Capital Return Program, which began in August 2012, for another fiscal year. A sum of $50 billion was given to investors this quarter, bringing the current program total to $211 billion. Infinite Loop hopes to wrap the program with a total of $300 billion by the end of March 2019.
Apple forecasts the following for its third quarter:
- revenue between $43.5 billion and $45.5 billion
- gross margin between 37.5 percent and 38.5 percent
- operating expenses between $6.6 billion and $6.7 billion
- other income/(expense) of $450 million
- tax rate of 25.5 percent
AAPL shares rose 0.6 percent by end of trading.