APPLE RESULTS: Billions For Shareholders But A Long Wait For New Products

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Apple shares were up and down after it released second quarter results, along with plans to return more cash to shareholders, and hints from Boss Tim Cook on new product timelines.

It authorized a $60 billion share buyback plan, and upped its quarterly dividend to $3.05 per share. To pay for the return, Apple plans to borrow cash.

Apple’s guidance for the June quarter is pretty weak compared to sell-side analyst estimates, but that was sort of expected.

Overall, this was a pretty good quarter, judged by the numbers. Considering the sentiment coming into this quarter was so negative, we’ll be interested in seeing if sentiment shifts.

During its earnings call CEO Tim Cook revealed that there were new products in the works, but that they wouldn’t be coming out until late this year and into 2014.

He was asked about it again during the Q&A with analysts, and repeated himself saying, “We will have some really great stuff in the fall and all across 2014.”

Its something spectators will be watching closely. Some analysts had been predicting news iPhones in June and July.

The company is forecasting midpoint revenue of $34.5 billion for the June quarter. If this is accurate, it means Appleā€™s revenue will be down on a year-over-year basis.

Apple was a growth story for the last decade. It is not anymore. At least not until those new products hit the market.

The last time Apple had a major product launch was October last year for the iPad Mini and new iMacs.

The stock was up 6% after hours, going to ~$429. Then it crashed, and is now slightly down.

Here’s a full breakdown of how Apple did versus estimates:

  • Revenue: $43.6 billion billion versus $42.3 billion analysts’ estimate
  • EPS: $10.09 versus $9.98 analysts’ estimate
  • Gross margin: 37.5% versus 38.5% analysts’ estimate
  • iPhone: 37.4 million versus 36.5 million analysts’ estimate
  • iPad: 19.5 million versus 18.3 million analysts’ estimate
  • Mac: Just under 4 million million versus 4.1 million analysts’ estimate
  • iPod: 5.6 million versus 6.25 million analysts’ estimate
  • June quarter revenue: $33.5-$35.5 billion versus $38.6 billion analysts’ estimate
  • June quarter gross margin: 36%-37% versus 38.6% analysts’ estimate
  • Cash balance of $145 billion

Read all of Business Insiders’s Apple coverage here.

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