News On Apple Stock Earnings: AAPL Gains 2% On Earnings Beat, Buyback Policy

(CTN News) – Revenue and earnings per share for Apple were above consensus in the first quarter.

• The iPhone was in high demand.

• Sales of Macs and iPads have declined significantly year over year.

• Announcing a $90 billion buyback announcement resulted in AAPL stock rising.

In response to Apple (AAPL) exceeding the Wall Street consensus on its top and bottom lines, the company’s stock climbed 2.2% higher after hours to $169.51. According to Apple’s earnings report for the first quarter, the company generated $94.82 billion in revenue.

The company surprised the market by $2 billion in revenue, and by nine cents in earnings per share.

News about Apple’s earnings: $90 billion in buybacks are always beneficial

The company’s CEO, Tim Cook, was pleased with iPhone revenue, which reached $51.3 billion or 54% of the quarter’s total.

A strong demand for the iPhone 14, Pro, and Max models buffeted the segment, while Mac and iPad products performed less well. Mac revenue decreased by 31% YoY from $7.2 billion to $6.9 billion.

Apple’s chief executive officer, Tim Cook, has attributed this pullback to customer interest in the M1 rather than the more expensive M2 models, which are Apple’s top-of-the-line in-house processors.

As well, iPad revenue of $6.7 billion decreased by nearly 13% over the same period last year.

Despite the fact that revenue decreased 2.5% year over year, Tim Cook repeatedly emphasized his belief that the company will experience a recovery in global growth with the emergence of India on the world stage.

According to Cook, a large number of Indians will gain access to the middle class during the next decade and Apple has taken the growth market seriously.

The services segment recorded a 5.5% increase in sales over the previous year. There were 975 million paid subscriptions in the past year, an increase of 150 million YoY.

As a result of complications arising from covid lockdowns, revenues in China declined by 3% YoY. There was no change in revenue for the Wearables, Home, and Accessories segment.

Apple’s board raised the dividend by more than 4% to $0.24 per quarter, but more importantly announced a new share repurchase program worth $90 billion. In terms of Apple’s market capitalization, the buybacks comprise 3.4%.

Predictions for Apple stock

Depending on how Apple stock performs following this earnings release, bulls may push it to either $176 or $179. In August 2022, the first level was the pinnacle of price action, while the second level comes from the swing high of March of the previous year.

It is likely that AAPL will find support at the 21-day moving average, currently at $165.50. There is little support below $165.50 until the demand zone between $150 and $156 is reached.

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