As expected, Apple announced its revenue results for the fiscal second quarter of 2024 (first calendar quarter) today. The Cupertino company posted quarterly revenue of $90.8 billion for a net quarterly profit of $23.6 billion ($1.53 per diluted share). That compares to revenue of $94.8 billion and a net quarterly profit of $24.1 billion, or $1.52 per diluted share, in the year-ago quarter.
Apple’s gross margin for the quarter was 46.6% (compared to 44.3% in the quarter one year ago). Apple’s board of directors declared an increased dividend payment of $0.25 per share, payable May 16 to shareholders of record as of May 13. The board also authorized an additional $110 billion for share repurchases.
“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.”
“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter,” said Luca Maestri, Apple’s CFO. “Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $110 billion for share repurchases. We are also raising our quarterly dividend for the twelfth year in a row.”
Thomas Monteiro, senior analyst at Investing.com commented on Apple’s quarter.
It’s an earnings report that leaves no margin for doubt about Apple’s current state of affairs. More than ever in the past decade, the company needs new products and solutions that will shift its behemoth operating costs back into the sustained growth path.
Thomas Monteiro
“Against this backdrop, Apple will need massive mid-term investor support and trust, which is why it announced its largest-ever round of buybacks. It’s certainly a great time to resort to this strategy as, on the one hand, the stock remains relatively fairly priced, and, on the other hand, it needs to garner solid support for a structural shift that may very well take several quarters to play out,” he continued.
“This should most likely refer to higher and better hardware-to-product AI integration, something that has already begun to show some success on a smaller scale on the Mac operation, which did surprisingly well despite the overall woes. However, the sustained downtrend in iPhone sales and pressured margins show that the revenue growth plateau is more than a regional problem and should keep on deepening without new, more innovative products,” Monteiro said.
As they’ve done for over four years, Apple is once again not issuing any guidance for the current (fiscal third) quarter, which ends in June.