Apple sharply beats Wall Street expectations of $ 90 billion share buyback

by Stephen Nellis

SAN FRANCISCO (Reuters) – Apple on Wednesday reported sales and profits well above Wall Street expectations and announced a $ 90 billion share buyback program, as consumers switched to 5G-enabled iPhones and purchased the new Mac computer models.

The quarterly results reported by the firm to Apple have beaten analysts’ expectations in all categories, with iPhone sales $ 6.5 billion above expectations and Mac computer sales by nearly a third higher than expected. Sales in China almost doubled.

These results were published against the backdrop of a global semiconductor shortage that is penalizing US automakers but appears to spare Apple, a massive chip buyer known for its expertise in supply chains.

“There was no material problem with our results due to procurement,” Apple boss Tim Cook told Reuters, adding that the group was seeing a “very solid” recovery in the making. of the American economy.

Apple has benefited since the onset of the coronavirus health crisis from the growing attraction for electronic devices and services related to fitness and music.

For the fiscal quarter ended March 27, the group posted revenue of $ 89.6 billion and earnings per share of $ 1.40, while analysts on average expected Refinitiv data on $ 77.4 billion in sales and EPS of 99 cents.

Apple shares gained 3% in after-market trading following the publication of results.

In addition to raising the dividend by 7% to 22 cents, a dime above estimates, Apple announced a $ 90 billion share buyback program, the day after Alphabet announced a similar plan. of $ 50 billion.

(French version Jean Terzian)

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