Reuters

(Reuters)

Apple Reveals Fiscal Second-Quarter Beat

Earnings Reuters

Apple Inc (AAPL) raised its dividend and boosted its share repurchase program by $50 billion as it reported a 27 percent rise in quarterly revenue on the back of surging iPhone sales.

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The most valuable publicly traded U.S. company sold 61.2 million iPhones in the quarter, up 40 percent from the year-ago quarter, but down from the record-breaking holiday quarter. It sold 12.6 million iPads, down 23 percent from a year ago.

Its shares rose 1.6 percent in after-hours trading to $134.52.

"A 60 million-plus iPhone number is a home run and will be cheered by the Street as this remains the bread and butter of Apple," said FBR Capital Markets analyst Daniel Ives. "The Street was looking for a $150 billion buyback, we would characterize a $200 billion buyback as exactly what the Street wanted as this has been a hot button issue."

Apple increased its share repurchase authorization to $140 billion from $90 billion announced last year.

On top of that, it raised its quarterly dividend 11 percent to 52 cents per share. Together, Apple estimated that would mean returning $200 billion to shareholders by the end of March 2017.

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Apple said net income rose to $13.57 billion, or $2.33 per share, from $10.22 billion, or $1.66 per share, a year earlier.

Analysts had expected earnings per share of $2.16 per share, according to Thomson Reuters I/B/E/S.

Revenue rose to $58.01 billion in the second quarter ended March 28, from $45.65 billion a year earlier. That beat Wall Street's expected revenue of $56 billion.

(Reporting by Devika Krishna Kumar in Bengaluru; Editing by Sriraj Kalluvila, Bernard Orr)

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