Apple Revenues Down 13%, Stock Slides 8% On Earnings, Revenue News
April 27, 2016 at 3:26 AM (PT)
APPLE released financial results for its fiscal 2016 second quarter ended MARCH 26, 2016 YESTERDAY (4/26). The numbers missed analysts' estimates, and its guidance for the current quarter also fell shy of expectations. APPLE reported fiscal Q2 earnings of $1.90 per diluted share on $50.56 billion in revenue. WALL STREET projected APPLE to report earnings of about $2 a share on $51.97 billion in revenue.
CNBC noted, "that revenue figure was a roughly 13% decline against $58.01 billion in the comparable year-ago period — representing the first year-over-year quarterly sales drop since 2003. Shares in the company fell more than 8% in after-hours trading, erasing more than $46 billion in market cap. That after-hours loss is greater than the market cap of 391 of the S&P 500 companies. Importantly, the company announced a 10% dividend increase and a $50 billion increase to its capital return program. Under that new plan, APPLE expects to spend a total of $250 billion of cash by the end of MARCH 2018, it said."
“Our team executed extremely well in the face of strong macroeconomic,” said CEO TIM COOK. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the APPLE ecosystem and our growing base of over one billion active devices.”
“We generated strong operating cash flow of $11.6 billion and returned $10 billion to shareholders through our capital return program during the MARCH quarter,” said CFO LUCA MAESTRI. “Thanks to the strength of our business results, we are happy to be announcing today a further increase of the program to $250 billion.”
JACOBS MEDIA points to more than just disappointing iPHONE sales as APPLE's issues, blogging that the APPLE WATCH just hasn't taken off.
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