Apple (NASDAQ:AAPL) Releases Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Apple reported a quarterly earnings per share (EPS) of $1.57, exceeding expectations by $0.14 and achieving a 9.6% increase in revenue year-over-year to $94.04 billion.
• The company has declared a quarterly dividend of $0.26 per share, with an upcoming payment date of August 14th and a dividend yield of 0.5%.
• Apple initiated a significant $100 billion share buyback program, indicating the board's belief that the stock is undervalued.

Apple (NASDAQ:AAPL - Get Free Report) released its quarterly earnings data on Thursday. The iPhone maker reported $1.57 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.14, Zacks reports. The business had revenue of $94.04 billion for the quarter, compared to analyst estimates of $88.64 billion. Apple had a return on equity of 170.91% and a net margin of 24.30%. Apple's revenue was up 9.6% compared to the same quarter last year. During the same period last year, the firm posted $1.40 earnings per share.

Apple Price Performance

Apple stock traded up $1.09 during trading hours on Monday, hitting $203.47. The stock had a trading volume of 36,646,040 shares, compared to its average volume of 56,858,840. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.87 and a quick ratio of 0.83. The stock has a market capitalization of $3.04 trillion, a price-to-earnings ratio of 30.86, a PEG ratio of 2.20 and a beta of 1.16. Apple has a 1-year low of $169.21 and a 1-year high of $260.10. The stock's fifty day moving average is $205.37 and its two-hundred day moving average is $213.50.

Apple Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Investors of record on Monday, August 11th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Monday, August 11th. Apple's dividend payout ratio is currently 15.78%.

Analysts Set New Price Targets

AAPL has been the subject of a number of analyst reports. Rosenblatt Securities restated a "neutral" rating and set a $217.00 price objective on shares of Apple in a research report on Tuesday, July 29th. Raymond James Financial reissued an "outperform" rating and issued a $240.00 price objective (up previously from $230.00) on shares of Apple in a research note on Friday. Evercore ISI lifted their target price on Apple to $250.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Jefferies Financial Group upgraded Apple from an "underperform" rating to a "hold" rating in a report on Friday, July 18th. Finally, The Goldman Sachs Group restated a "buy" rating on shares of Apple in a research note on Wednesday, May 21st. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating, fifteen have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Apple has a consensus rating of "Moderate Buy" and a consensus price target of $237.25.

Apple declared that its Board of Directors has authorized a share buyback program on Thursday, May 1st that allows the company to buyback $100.00 billion in outstanding shares. This buyback authorization allows the iPhone maker to buy up to 3.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Chris Kondo sold 4,486 shares of the stock in a transaction on Monday, May 12th. The stock was sold at an average price of $208.19, for a total transaction of $933,940.34. Following the sale, the insider owned 15,533 shares of the company's stock, valued at $3,233,815.27. This trade represents a 22.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.06% of the company's stock.

Institutional Trading of Apple

A number of large investors have recently made changes to their positions in AAPL. Capstone Wealth Management Group LLC lifted its position in Apple by 0.5% during the first quarter. Capstone Wealth Management Group LLC now owns 14,809 shares of the iPhone maker's stock worth $3,290,000 after buying an additional 74 shares during the period. Gator Capital Management LLC purchased a new position in Apple during the fourth quarter worth about $263,000. Woodside Wealth Management LLC purchased a new position in Apple during the first quarter worth about $248,000. EntryPoint Capital LLC purchased a new position in Apple during the first quarter worth about $246,000. Finally, Corient IA LLC purchased a new position in Apple during the first quarter worth about $233,000. Institutional investors and hedge funds own 67.73% of the company's stock.

About Apple

Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.