Soon we’ll not be supporting this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Apple - $100bn share buyback, and dividend raised too

George Salmon | 2 May 2018 | A A A
Apple - $100bn share buyback, and dividend raised too

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Apple Inc Com Stk NPV

Sell: 146.00 | Buy: 146.03 | Change -2.73 (-1.83%)
Chart View factsheet

Market closed | Prices delayed by at least 15 minutes | Switch to live prices

Apple's second quarter results show sales rose 16% to $61.1bn in the three months to 31 March. Growth was driven by improvements in all products and geographies.

The group also announced it will be 'working towards a more optimal capital structure'. This means Apple is boosting shareholder returns. The group is raising the quarterly dividend 16% to $0.73 per share, and has promised a new $100bn share buyback.

The shares rose 3.7% in after-market trading.

View the latest share price and how to deal

Second quarter trading details

Apple's main source of revenue remains iPhone sales, which rose 14% year-on-year to $38bn, despite volumes rising only 3%. This reflects the higher price of the latest models.

Services, which includes the app store and Apple Pay, again delivered strong growth, with revenue rising 31% to $9.2bn. With iPad and Mac sales at $4.1bn and $5.8bn respectively, Services is now comfortably Apple's second largest division.

While group margins fell slightly, higher sales and a significantly lower tax expense ensured pre-tax profit rose 25.3% to $13.8bn.

Looking ahead, Apple expects revenue of between $51.5bn and $53.5bn in Q3, which would represent another increase of around 16% on the prior year. Gross margins are set to be between 38% and 38.5%, broadly level with Q2, but slightly down on the Q3 2017.

Register for updates on Apple

Find out more about Apple shares including how to invest

Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Thomson Reuters. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

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.