Apple Inc. AAPL has continued its robust capital return program, returning over $32 billion to shareholders in the third quarter of fiscal year 2024.
What Happened: During the earnings call, Apple’s CFO Luca Maestri provided details on the company’s capital allocation strategy.
“During the quarter, we returned over $32 billion to shareholders, including $3.9 billion in dividends and equivalents and $26 billion through open market repurchases of 139 million Apple shares,” Maestri stated.
The company also announced its next dividend payment, with Maestri saying, “Today our Board of Directors has declared a cash dividend of $0.25 per share of common stock payable on Aug. 15, to shareholders of record as of Aug. 12.”
This substantial return of capital to shareholders comes amid a quarter of strong financial performance for Apple. The company reported a new June quarter revenue record of $85.8 billion, up 5% year-over-year, with earnings per share growing to $1.40, also a June quarter record.
Why It Matters: Apple’s strong financial performance in the third quarter is noteworthy, especially considering the company’s recent challenges. On Thursday, Apple reported earnings that exceeded expectations, with revenue growing year-over-year.
Earlier in the day, analysts had anticipated that Apple’s third-quarter results would signal an inflection in topline growth. The June quarter is typically slow for Apple, but the company managed to report growth in both revenue and earnings per share.
Moreover, Warren Buffett’s Berkshire Hathaway has significantly benefited from its stake in Apple, roughly 5.1% of the company. And it’s a significant stake for Berkshire, representing over 40% of its portfolio, earning substantial dividends annually.
Price Action: Apple’s stock closed at $218.36 on Thursday, down 1.68% for the day. In after-hours trading, the stock increased by 0.57%. Year to date, Apple’s stock has risen by 17.63%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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