CUPERTINO, Calif. - Apple Inc. (NASDAQ: NASDAQ:AAPL) disclosed its fiscal 2024 second-quarter results, highlighting a revenue of $90.8 billion, a 4% decrease from the same period last year. Despite the overall revenue decline, the tech giant achieved a record in its services segment, as stated by CEO Tim Cook on Thursday.
The earnings per share (EPS) for the quarter reached $1.53, marking a new record for the March quarter. Apple's services, which include offerings like the App Store, Apple Music, and iCloud, generated $23.867 billion, outperforming the previous year's figures.
Apple's CFO, Luca Maestri, attributed the company's robust performance to high customer satisfaction and loyalty, which led to a new all-time high in the active installed base of devices across all product categories and geographic segments. This growth also contributed to the record-setting EPS.
Reflecting confidence in the company's future, Apple's board of directors has authorized an additional $110 billion for share repurchases and announced a 4% increase in its quarterly dividend to $0.25 per share, payable on May 16, 2024, to shareholders on record as of May 13, 2024.
The report also included forward-looking statements regarding Apple's capital return plans and upcoming business initiatives, including product announcements and the Worldwide Developers Conference. However, these statements are subject to risks and uncertainties that could materially affect future results.
The press release offered insights into Apple's current financial position, with cash and marketable securities totaling $67.15 billion as of March 30, 2024. It also noted the company's commitment to innovation, customer experiences, and social responsibility.
InvestingPro Insights
As Apple Inc. (NASDAQ: AAPL) navigates a challenging quarter with a slight revenue dip, its commitment to returning value to shareholders remains steadfast. With a notable PRONEWS24 coupon code, investors can explore additional InvestingPro Tips that delve deeper into the company's financial nuances.
InvestingPro Tips highlight Apple's aggressive share buyback strategy and its impressive track record of raising dividends for 12 consecutive years, showcasing management's confidence in the company's financial health. The tech giant's latest dividend increase to $0.25 per share aligns with this trend, reinforcing its status as a reliable dividend payer.
From a valuation perspective, Apple's P/E ratio stands at 26.48 for the last twelve months as of Q1 2024, reflecting a premium market valuation. The company's Price / Book ratio of 36.06 further underscores its strong market position, though it suggests investors are paying a high price for equity compared to the company's book value.
Financially, Apple's gross profit margin of 45.03% during the same period illustrates its ability to maintain profitability despite revenue fluctuations. This margin, combined with a robust operating income margin of 30.76%, indicates efficient management and a strong competitive edge within the industry.
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