Apple Beats Q2 Estimates, Lifts Dividend

reported better-than-expected results for the fiscal second quarter and increased its dividend by 11 percent. The Cupertino, California-based company posted quarterly net income of $13.57 billion, compared to $10.22 billion, in the year-earlier quarter. EPS climbed to $2.33, versus $1.66. Its revenue gained 27 percent to $58.01 billion, compared to $45.65 billion. However, analysts were expecting a profit of $2.16 per share on revenue of $56 billion. Its gross margin came in at 40.8 percent in the quarter. The company's board also increased buyback plan from $90 billion to $140 billion. Related Link:

During the quarter, the company sold 61.17 million iPhones, a 40 percent rise versus the year-ago period. Apple also sold 12.6 million iPads. Apple iPhone revenue climbed to $40.28 billion in the second quarter from $26.06 billion in the year-ago period, while iPad revenue slipped to $5.43 billion from $7.61 billion. Apple Mac revenue rose to $5.62 billion. from $5.52 billion in the year-earlier quarter. The average estimate among 439 Estimize users was for earnings of $2.27 per share and revenue of $57.38 billion. "We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," said Tim Cook, Apple's CEO. "We're seeing a higher rate of people switching to iPhone than we've experienced in previous cycles, and we're off to an exciting start to the June quarter with the launch of Apple Watch." For the current quarter, the company projects revenue of $46 billion to $48 billion and gross margin of 38.5 percent to 39.5 percent. Apple shares rose 1.53 percent to $134.46 in the after-hours trading session.