Apple shares are up more than 8% post market after it released a lot of news designed to please investors — including a 7-for-1 stock split, an increase in stock repurchases to $90B from $60B, and an 8% increase in the quarterly dividend. “We are confident in Apple’s future and see tremendous value in Apple’s stock,” CEO Tim Cook says. The announcements come as the consumer electronics company released earnings for the first three months of the year that trounced Wall Street forecasts.
Apple generated net income of $10.22B, +7.1% vs the period last year, on revenues of $45.6B, +4.7%. Analysts thought the top line would come in at $43.5B. Earnings at $11.62 a share far exceeded the consensus prediction of $10.18. Some of the upbeat news comes from higher-than-expected iPhone sales. Apple sold 43.7M units, up 17% vs the period last year. But iPad sales slipped 16% to 16.4M units while Mac computers were +5% to 4.1M and iPods fell 51% to 2.8M.
Many analysts feared that Apple would remain stuck in neutral as other smartphone and tablet makers siphoned market share. That’s why company watchers are so eager to see whether Cook and his colleagues can come up with a new, blockbuster product. Cook says in today’s earnings release that he’s “eagerly looking forward to introducing more new products and services that only Apple could bring to market.” Apple shares are down 6.5% so far in 2014, not including today’s after-market trading.
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