ETF Impact On Apple Inc.’s Blockbuster Report

apple buzzSweta Killa: Technology giant Apple Inc. (NASDAQ:AAPL) reported blockbuster second quarter fiscal 2014 results. The company beat on both the top and bottom lines, and surprised the market with huge 7-for-1 stock split announcement. This has lent optimism not only to the company’s growth story but has also spread bullishness in the entire tech world, which has seen broad sell-off in the past weeks.

Apple Results in Focus

Earnings per share came in at $11.62, which comfortably surpassed the Zacks Consensus Estimate of $10.22 and improved from the year-ago earnings of $10.09. The company’s earnings growth reached the highest rate in six quarters.

Revenues rose 4.7% year over year to $45.6 billion, and were well ahead of our estimate of $43.4 billion. Gross margin was 39.3%, up from 37.5% in the year-ago quarter and higher than the company’s expectation of 37–38%.

Apple sold 43.7 million iPhones compared to 37.4 million in the year-ago quarter and topped the Wall Street estimate of 38.5 million iPhones. iPad sales fell to 16.35 million from 19.5 million.

The ubiquitous gadget-maker sees revenues in the range of $36–$38 billion for the current quarter; the midpoint of which is lower than the Zacks Consensus Estimate of $38.76 billion. Further, Apple expects gross margin in the range of 37–38% for the third quarter of fiscal 2014.

Apple showed increased confidence in its future growth by raising shareholders’ reward. The company raised its share repurchase program by $30 billion, boosted its quarterly dividend by 8% to $3.29 per share and split its stock on a 7-for-1 basis effective June 9. This will increase the company’s capital-return program to $130 billion by the end of calendar year 2015.

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