Apple Reports Record March Quarter Results, Splits Stock and Boosts Share Buyback

Apple LogoApple today announced financial results for the first calendar quarter and second fiscal quarter of 2014. For the quarter, Apple posted revenue of $45.6 billion and net quarterly profit of $10.2 billion, or $11.62 per diluted share, compared to revenue of $43.6 billion and net quarterly profit of $9.5 billion, or $10.09 per diluted share in the year-ago quarter.

Gross margin for the quarter was 39.3 percent compared to 37.5 percent in the year-ago quarter, with international sales accounting for 66 percent of revenue. Apple also declared an increased dividend payment of $3.29 per share, payable on May 15 to shareholders as of the close of trading on May 12. The company currently holds $150.6 billion in cash and marketable securities.

In addition to the increase in the dividend payment, Apple said it will dramatically increase its share repurchase authorization to $90 billion from $60 billion and will execute a 7-for-1 stock split as of June 9. The company says it expects to spend over $130 billion in cash under its capital return program by the end of 2015. Apple is now paying $11 billion per year in dividends to shareholders.

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Quarterly iPhone unit sales reached 43.7 million, compared to 37.4 million in the year-ago quarter, and the company sold 16.35 million iPads, up from 19.5 million in the year-ago quarter. Apple sold 4.1 million Macs compared to just under 4 million in the year-ago period.

“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.”

Apple’s guidance for the third quarter of fiscal 2014 includes expected revenue of $36-38 billion and gross margin between 37 and 38 percent.

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Apple will provide live streaming of its fiscal Q2 2014 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.



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