Apple just announced its fiscal second quarter earnings. Wall Street analysts were calling for an earnings per share (EPS) of $10.18 on revenue of $43.53 billion. Apple posted an earnings per share of $11.62 on revenue of $45.6 billion, which was up from Q2 2013 revenue of $43.6 billion. Apple’s own guidance for the quarter set expectations for revenue to fall between $42 billion and $44 billion, so it beat Wall Street and its own guidance. Apple’s guidance for Q3 sets revenue expectations for $36 billion to $38 billion with a gross margin between 37 percent and 38 percent.
Apple sold 43.7 million iPhones during the quarter, beating analyst estimates by about 6 million units, but said it sold 16.35 million iPads during the quarter which fell short of analyst predictions. It sold a total of 4.1 million Mac computers during the quarter and 2.76 million iPods.
“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 also announced a 7 for 1 stock split and said it will continue to increase its stock buyback initiatives. “Each Apple shareholder of record at the close of business on June 2, 20145 will receive six additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on June 9, 2014,” Apple said. It previously was authorized to repurchase as much as $60 billion in Apple shares, but now has authorization from the board to increase its share repurchase to $90 billion.
Apple’s up big time, around 7.3 percent, following the beat.