AP
- Wall Street analysts covering Apple were broadly positive following the company's first-quarter results.
- The company's shares gained 5% early Wednesday.
- Watch Apple trade live.
Apple's first-quarter earnings beat drove strongly positive reactions by both investors and Wall Street analyst. The company's stabilization in iPhone sales provided clarity after a rare revenue warning in January.
The company's shares spiked 5% in early Wednesday trading.
Revenues were driven by increased growth in the smaller services and wearables segments despite the slowdown in iPhone sales, which dropped 17% year-over-year to $31 billion. Quarterly revenue dropped 5% versus last year.
Even so, iPhone sales came in better than expected, and the company's guidance projected further improvements.
China iPhone sales in particular showed signs of stabilization, though Credit Suisse analyst Matt Cabral noted that long-term challenges remain in the market given increased competition and market saturation.
Apple designated a further $75 billion to buybacks and hiked its quarterly dividend by 5% to $0.77 a share. Analysts up and down Wall Street welcomed the increased capital return.
Several analysts noted 5G represents a key opportunity to recharge the company's growth. The company is preparing for the technology's rollout as it just settled its long-running patent dispute with Qualcomm.
Here's what Wall Street analysts are saying about Apple's Q1 results: