Apple jumped 3% on Thursday after it reported second-quarter earnings that smashed expectations.- The company saw its revenue jump by 54% year-over-year on the back of strong iPhone 12 sales.
- Apple also increased its dividend by 7% and raised its stock buyback program to $90 billion.
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Apple surged as much as 3% on Thursday after its second-quarter earnings report smashed analyst expectations.
The company reported a record non-holiday quarter driven by strong iPhone 12 sales, with revenue growing 54% year-over-year. Apple also increased its dividend by 7%, and raised its stock buyback program to $90 billion.
Here are the key numbers from Apple's second-quarter earnings report.
Revenue: $89.6 billion, versus analyst estimates of $77.3 billion
Earnings per share: $1.40, versus analyst estimates of $0.98
iPhone Revenue: $47.9 billion, versus analyst estimates of $40.8 billion
Apple's Services, Wearables, iPad, and Mac units also generated revenues well above analyst estimates, as the company's sticky ecosystem grows with new product launches like AirTags, Mac, and the iPad Pro.
"This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us," said Tim Cook, Apple's CEO.
The company said it saw record revenue in each of its geographic areas, as well as its installed base climb to record highs. Apple returned $23 billion to shareholders in the quarter, fueled by share buybacks and its quarterly dividend.
While Apple sees strong growth ahead, the company warned that a global shortage in semiconductor chips could lower its current quarter revenue by $3 billion to $4 billion as it struggles to meet demand for its iPad and Mac products.
Apple's strong performance in the quarter prompted upgrades from analysts. Goldman Sachs threw in the towel on its "Sell" rating and upgraded the company to Neutral, while Wedbush analyst Daniel Ives increased his price target to $185, representing potential upside of 35% from current levels.
Apple is set to open at $137 in Thursday morning trades, about 6% off its all-time high of $145.09.