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Apple Adds $50 Billion to Share Buybacks as Earnings Meet Expectations

NEW YORK ( TheStreet) -- Apple (AAPL - Get Report), eager to win back investor confidence, said it will buyback an additional $50 billion in stock, raising its total outlay for share repurchases to more than $60 billion.

Cupertino, Calif.-based Apple reported second-quarter results that met analyst expectations, earning $10.09 per share on $43.6 billion in revenue as iPad sales rose 65% year-over-year to 19.5 million units per year. The company sold 37.4 million iPhones in the quarter compared to 35.1 million in the year-ago quarter. Apple also sold just under 4 million Macs, compared to 4 million in the year-ago quarter.

Analysts polled by Thomson Reuters expect the tech giant to earn $10.01 per share on $42.31 billion in revenue. Analysts surveyed by Estimize are looking for earnings of $10.70 per share on $42.76 billion in sales.

"We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad," said Tim Cook, Apple's CEO in the press release. "Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline."

Future innovations aside, investors were focused on the company's decision to swell the size of its share buyback program to $60 billion from a current $10 billion. Apple also raised its quarterly dividend to $3.05 per share, an increase of 15% over its previous level.

For the fiscal third-quarter, Apple expects revenue will be between $33.5 billion and $35.5 billion, with gross margins between 36% and 37%.

Apple is set to hold a conference call at 5 P.M. EST to discuss the results.

Shares of Apple shares were rising in after-hours trading, gaining nearly 5% to $425.

-- Written by Chris Ciaccia in New York

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