Apple (AAPL) Reports Stellar Earnings, 7 for 1 Stock Split and Share Buyback Increase
Shares of Apple Inc. (AAPL) were trading up +39.64 or +7.55 percent to $564.39 per share in pre-market trading this morning, after the company announced better than expected earnings yesterday. In addition to the earnings release, Apple announced a 7 for 1 stock split and that the company was increasing its share buyback program. Apple stock closed at $524.75, down -6.95 or -1.31 percent in Wednesdayâ s regular trading session.
Cupertino, California based Apple Inc., formerly known as Apple Computer Inc. is the second largest information technology company in the world by revenue, and the worldâ s third largest manufacturer of mobile phones after Samsung and Nokia (NOK
). In addition to its line of Macintosh computers, the company also manufactures the iPod music player, the iPad tablet and the iPhone smartphone. Apple reported it had a quarterly net profit of $10.2 billion, or $11.62 per diluted share on revenue of $45.6 billion in its second quarter for fiscal 2014, compared to $9.5 billion on, or $10.09 per diluted share, on revenue of $43.6 billion for the same period one year ago. The analyst consensus was for the company to report earnings of $10.19 per share on $43.7 billion in revenue. Gross margins also increased year on year, with the company reporting margin of 39.3 percent, versus 37.5 percent in the same period one year ago. Sales abroad accounted for 66 percent of total quarterly revenue. Earnings per share increased +15 percent in the quarter, nevertheless, revenue actually declined -21 percent from the previous quarter, which saw revenue of $57.6 billion. Appleâ s Chief Executive Officer, Tim Cook, said in the companyâ s press release on earnings, â
Published on Apr 24, 2014
By Jay Hawk