From CNBC: 2024-05-02 21:00:45

Apple surprised skeptics by surpassing revenue expectations in its fiscal first quarter, hitting $90.75 billion and beating the LSEG estimate of $90.01 billion. Earnings per share rose to $1.53, exceeding the consensus estimate of $1.50. Apple’s gross margin also expanded to 46.6%, indicating a strong performance. Additionally, the company announced a $110 billion share repurchase authorization following solid sales in Greater China and other regions. Apple’s services business continued to shine, reaching record revenue levels and setting new sales records in various markets. CEO Tim Cook emphasized the company’s investments in artificial intelligence and privacy, revealing plans to introduce innovative products in the near future. Apple’s strong performance and positive catalysts support a raised price target of $220. Apple maintained its net cash neutral strategy, returning excess cash to shareholders through buybacks and dividends. The company’s high-margin services business, extensive product portfolio, and customer loyalty contribute to its ongoing success. Services revenue achieved an all-time high, driven by an expanding user base and increased customer engagement with Apple’s ecosystem. Apple’s outlook remains strong, with revenue expected to grow in the low-single digits in the June quarter. Services revenue is forecasted to increase at a double-digit rate, outpacing Wall Street estimates. iPad sales are projected to rise significantly year over year, indicating continued momentum beyond the first quarter. Operating expenses are expected to align with analyst estimates, underscoring Apple’s commitment to financial discipline and capital allocation.



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