Analysts respond to AAPL earnings, rating the stock a strong buy

Photo: USA Today

Photo: USA Today

Early overnight reports collated by Fortune unsurprisingly show analysts pleased by the higher-than-expected iPhone numbers, with five out of five rating the stock a buy, their price targets ranging from $75 to $252 above yesterday’s closing value. Apple reported iPhone sales of 43.7B against expectations of 38B, and revenue of $45.6B against the consensus estimate of $43.5B.

  • Katy Huberty, Morgen Stanley: Price target $630

  • Gene Munster, Piper Jaffray: Price target $640

  • Brian Marshall, ISI: Price target $600

  • Brian White, Cantor Fitzgerald: Price target $777

  • Peter Misek, Jefferies: Price target $625  …

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Apple announces 20 million Apple TVs sold through Q2 2014

ATV

During Apple’s earnings call this evening, Apple CEO Tim Cook announced that the company has sold 20 million Apple TV boxes through the second quarter of 2014. Sharing this number is out of the ordinary for Apple, as it generally doesn’t break down specific sales for its set-top box like it does for other products.

Apple’s decision to give us specific sales information for the Apple TV, however, does corroborate with its move earlier this year to present the device as its own product line, as opposed to an accessory. Cook also said on the call that Apple TV is over a billion dollar market, which means that it is no longer just a “hobby” for the company.

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Tim Cook addresses iPad sales slowdown, says Microsoft should have released Office sooner

On Apple’s earnings call, Tim Cook directly addresses concerns surrounding iPad. Notably, he calls out Office as helping iPad sales somewhat but ‘frankly’ admits that Microsoft should have released Office for iPad sooner. He says that in the time that Microsoft waited, other companies including Apple have released very-competitive productivity alternates to Office, likely referencing iWork.

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New video compares alleged iPhone 6 case to iPhone 5s, Nexus 5, and Galaxy Note 3

Screen Shot 2014-04-23 at 1.32.26 PM

A new video published by UnboxTherapy provides a closer look at an alleged third-party case for Apple’s upcoming iPhone 6 that was recently shown off in a set of photos. The case’s design definitely falls in line with previous leaks and rumors that we’ve reported on, but could be a manufacturer’s attempt to take a risk and get ahead of the game.

The video below compares the case’s design to the iPhone 5s, Nexus 5, and Samsung Galaxy Note 3. Surprisingly, the case’s layout almost lines up perfectly with Google’s Nexus 5, which gives us a good idea of the iPhone 6′s overall form-factor if the leaked specifications used to manufacture this case are correct.

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Apple reports $45.6 billion revenue for Q2 2014: 43.7m iPhones, 16.3m iPads, 4.1m Macs, 2.7m iPods

130521141911-tim-cook-hero-tax-code-614xaApple just announced its second quarter results for 2014 with revenue for the quarter coming in at $45.6 billion. That’s compared to the guidance it previously provided of $42 – $44 billion and estimates by analysts averaging approximately $43.5B. Apple’s $45.6 billion in revenue reported today is also up from the $43.6 billion in revenue in the year ago quarter.

Break down of device sales for Q2 2014 include 43.7m million iPhones, 16.3 million iPads, and 4.1 million Macs. Compare that to an average of 38M iPhones, 19.3M iPads, 4M Macs, and 3M iPods predicted by the analysts leading up to today. In the same quarter last year, Apple sold 37.4 million iPhones, 19.5 million iPads, just under 4 million Macs, and 5.6 million iPods.

It also reported net quarterly profit of $10.2 billion, or $11.62 per diluted share in contrast to quarterly net profit of $9.5 billion, or $10.09 per diluted share in the same quarter last year.

“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.”

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.”

Apple is providing guidance for its next quarter of revenue between $36 billion and $38 billion.

The question of the day for Tim Cook and other Apple executives on today’s call will surely be the new product categories that Cook previously said were coming across 2014 and have yet to make an appearance in the first quarter. With Apple’s WWDC developer conference just around the corner, we’ll have to wait and see if Cook gives us any clues of what’s to come during the call today at 2:00 p.m. PST/5:00 p.m. EST. Stay tuned to our live blog for coverage. 

Apple’s full press release is below: Read more

Apple to increase share buybacks to $90 billion, announces seven-to-one stock split, increase dividend to $3.29 per share

 

D11 Tim Cook

As part of Apple’s earnings releases, Apple has announced an extension to its buyback plans. The company will now buyback an additional $30 billion of Apple stock, totalling $90 billion, significantly accelerating its original plans.

Apple® today announced that its Board of Directors has authorized another significant increase to the Company’s program to return capital to shareholders. The Company expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.

The board has also announced a seven-for-one stock split beginning June 2nd 2014. Apple last split its stock in 2005, nine years ago. Apple will also increase the dividend by about 8 percent to $3.29 per common share. This will begin on May 15th. Apple plans to increase its dividend every year. In an interview with the Wall Street Journal, Cook said that the buyback will “show you how much confidence we have in the future of the company”.

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