Apple Beats Expectations Across the Board, Increases Dividends 7%

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Apple Inc. continued its hot streak on Wednesday, posting better-than-expected revenue across all of its product categories for the March quarter, while boosting its buyback program by $ 90 billion and raising its dividend by 7%. The shares were up 3.9% in after-hours trading.

The company reported fiscal second quarter net income of $ 23.6 billion, or $ 1.40 per share, compared to $ 11.2 billion, or 64 cents a share, a year earlier. Analysts followed by FactSet were expecting 99 cents a share in earnings. Apple’s AAPL, -0.60% revenue for the quarter increased to $ 89.6 billion from $ 58.3 billion, while analysts were projecting $ 77.1 billion. Total revenue was a record for the March quarter. The company saw iPhone sales surge to $ 47.9 billion from $ 29.0 billion a year ago, above the FactSet consensus, which called for $ 41.4 billion. The March quarter marked the first full quarter of availability for Apple’s iPhone 12 line. Apple’s iPad and Mac businesses continued to operate as consumers searched for technology that could help them work and study from home. Revenue from iPads increased to $ 7.8 billion from $ 4.4 billion and beat the FactSet consensus of $ 5.6 billion. Macs revenue increased to $ 9.1 billion from $ 5.4 billion, while analysts were expecting $ 6.8 billion. The company generated $ 7.8 billion in revenue from its wearable, home and accessories category, up from $ 6.3 billion a year earlier and ahead of the FactSet consensus, which called for $ 7.4 billion. Apple’s services segment revenue grew to $ 16.9 billion from $ 13.3. billion, while analysts were looking for $ 15.5 billion. “We are proud of our performance in the March quarter, which included revenue records in each of our geographic segments and strong double-digit growth in each of our product categories, bringing our installed base of active devices to a all-time high, “said the chief Financial officer Luca Maestri said in a statement. The company added $ 90 billion to its share buyback authorization and increased its dividend by 7% to 22 cents a share. Apple historically provides updates on its return on equity plans with its March quarter release.