Apple announces largest-ever $110 billion share buyback as iPhone sales drop 10%
Apple shares climbed 7% in extended trading on Thursday after the iPhone maker reported fiscal second-quarter earnings that topped estimates and announced an expanded stock buyback program.
Apple announced that its board had authorized $110 billion in share repurchases, a 22% increase over last year's $90 billion authorization. It's the largest buyback in history, ahead of Apple's previous repurchases, according to data from Birinyi Associates.
However, overall sales fell 4% and iPhone sales fell 10% year over year during the quarter, which Apple attributed to a tough comparison versus last year.
Here's how Apple did versus LSEG consensus estimates in the quarter ended March 30:
Apple did not provide formal guidance, but Apple CEO Tim Cook told CNBC's Steve Kovach that overall sales would grow in the "low single digits" during the June quarter.
Apple posted $81.8 billion in revenue during the year-ago June quarter and LSEG analysts were looking for a forecast of $83.23 billion.
On an earnings call with analysts, Apple finance chief Luca Maestri said the company expected the current quarter will deliver double-digit year-over-year percentage growth in iPad sales. What's more, he said the Services division is forecast to continue growing at about the current high rate it's achieved during the past two quarters.
Apple reported net income of $23.64 billion, or $1.53 per share, down 2% from $24.16 billion, or $1.52 per share, in the year-earlier period.
Cook told CNBC that sales in the fiscal second quarter suffered from a difficult comparison to the year-earlier period, when the company realized $5 billion in delayed iPhone 14 sales from Covid-based supply issues.
"If you remove that $5 billion from last year's results, we