Apple Inc. shares were gaining in after-hours trading Tuesday after the company beat earnings and revenue expectations for its fiscal second quarter, while also issuing a revenue forecast for the current period that exceeded expectations.
The smartphone giant reported fiscal second-quarter net income of $11.6 billion, or $2.46 a share, down from $13.8 billion, or $2.73 a share, in the year-earlier period. Revenue fell to $58 billion from $61.1 billion.
Analysts surveyed by FactSet had been modeling $2.36 in earnings per share and $57.5 billion in revenue, on average.
For the second-quarter, Apple AAPL, -1.93% expects revenue of $52.5 billion to $54.5 billion, compared with the $52.1 billion that analysts had been modeling. The company announced that its board authorized a further $75 billion in share repurchases and a 5% increase to its dividend. The new quarterly dividend will be 77 cents a share.
The stock was up 4.2% in after-hours trading. Shares of Apple would have to close up 5.7% in Wednesday’s session for the company to reclaim a $1 trillion market value.
Apple has stopped reporting iPhone units sales, but it matched expectations with its iPhone revenue, which came in at $31.1 billion. Analysts tracked by FactSet had been projecting $31.1 billion.
The company posted $5.5 billion in Mac revenue, $4.9 billion in services revenue, $5.1 billion in wearables and home revenue and $11.5 billion in services revenue. The smartphone maker is expected to provide more detail about its forthcoming services offering on the earnings call.
China was a source of trouble for Apple during the holiday quarter, and the company saw another big decline there this time around. Apple reported $10.2 billion in revenue from Greater China during the March period, down from $13.0 billion a year earlier.
Shares fell 1.9% in Tuesday’s regular session, though they’ve gained 27% so far this year. The Dow Jones Industrial Average DJIA, +0.15% of which Apple is a component, has risen 14% in that time.
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