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Apple - shares rise as iPhone sales return to growth

George Salmon | 2 August 2017 | A A A
Apple - shares rise as iPhone sales return to growth

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Apple Inc Com Stk NPV

Sell: 172.13 | Buy: 172.15 | Change 3.61 (2.14%)
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Apple shares were 5.8% up in US pre-market trading, following the release of third quarter results.

Revenue of $45.4bn was 7% higher than last year, with earnings per share rising 18% to $1.67.

Services, which includes iTunes and the App store, was again the fastest growing of Apple's main divisions, with revenues rising 22% to $7.3bn. However at $24.8bn, iPhone remains the largest contributor to total revenues. After a 23% decline this time last year, the group's flagship division has returned to growth, with revenues up 3% year-on-year.

The group's other divisions all saw revenues rise too. iPad sales rose 2% to $5bn, with Mac sales up 7% to $5.6bn. Revenue from other products, including Apple TV and Watch, rose 23% to $2.7bn. The quarter also saw Apple return $11.7bn to shareholders, taking the cumulative capital returns under the shareholder returns program to almost $223bn. The next quarterly dividend of $0.63 per share is due to be paid on 17 August.

The group's guidance for the fourth quarter is for revenue between $49bn and $52bn, implying growth of between 4.4% and 10.8% on Q4 2016 Gross margins are set to remain steady at 37.5% to 38%.

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This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research for more information.

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