Apple this afternoon shocked investors by reporting quarterly earnings that exceed almost all analyst expectations.
Posting a profit margin of nearly 40%, Apple earned almost $46 billion in revenue during the last quarter, well ahead of expectations below $44 billion. The revenue came from selling nearly 44 million iPhones—far more than expected—and more than 16 million iPads—slightly fewer than expected. Additionally, Apple sold four million Macs and three million iPods.
"We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”
The world's most valuable technology company also announced a 7-for-1 stock split, an increase in its share buyback, and a dividend boost.
“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” noted Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.”
Apple expects to generate revenues of up to $38 billion during the next quarter.