My Victory Lap After What I See as Apple's Best Quarter Ever
Apple's earnings rose 7% year over year to $10.2 billion, or $11.62 per share. Consider, aside from beating estimates by 14%, this number would already exceed what most technology companies make in an entire year.
Revenue climbed 5% year over year to $45.6 billion, also topping estimates by 5%. But as I said on Monday, the biggest issue would be iPhone unit sales. Analysts were modeling for 38.5 million, but Apple demolished that number by 13%, reaching 43.7 million, or 17% growth year over year. Note, I was modeling for 40 million.
During the conference call, Luca Maestri, who will become the company's chief financial officer later this year, said the strong unit number was boosted by strong demand in China, the U.S., Western Europe and Japan.
Tim Cook also rewarded investors with an additional $30 billion buyback plan and raised Apple's quarterly dividend by 8% to $3.29, two more things I told you would happen. The company is now earmarking $90 billion for buybacks, which makes reaching $600 per share a sure thing. But that's not all.For the first time in nine years, Apple said it will split it stock 7:1, effective sometime early in June. While the total value of the company won't change, the split will dramatically decrease the per-share price of the stock, which closed Wednesday at $524.75. In after-hours trading Wednesday, Apple stock traded well of $565, up close to 8%. Tim Cook just confirmed the new era of Apple and in the process, he's upgraded his status from stage manager to director. The lights are on him, the camera is watching and he just yelled "action." At the time of publication, the author was long AAPL and held no position in any of the stocks mentioned. Follow @Richard_WSPB
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