In addition to announcing first-quarter earnings on its earnings call, Apple also announced a record share buyback program worth $110 billion. Both this program and the fact that revenues exceeded expectations despite the decrease had a positive impact on the company’s shares.
Apple published its financial situation report for the first quarter of 2024 today. The results showed that sales other than computers increased, while there was a decrease in other devices. This situation was also reflected in revenues and profits, and the company $90.8 billion reported a decrease of around 4% in revenue on an annual basis. However, this statement of the company did not have a negative impact. Because revenues managed to exceed analysts’ expectations. So Apple performed better than expected.
This wasn’t the only statement Apple made. The company also announced that it will make the largest share buyback in history. cost $110 billion It was announced as.
Shares rise after earnings release and share buyback program announcement
The new $110 billion share buyback program was a record among U.S. companies in recent years. The previous record also belonged to Apple. The company made a $100 billion buyback in 2018. Share buyback means that a company buys its own shares from the open market or from shareholders. Companies use this strategy to reduce the number of outstanding shares and increase the value of the remaining shares for shareholders. It can also increase earnings per share.
In other words, this kind of move leads to positive results. As a matter of fact, Apple shares revealed that this was happening. Shares rose after the company reported better-than-expected earnings and a $110 billion share buyback program increased by 6% It went up to 184 dollars. At the time of writing this news, it is trading at $173.
For Apple’s earnings in the first quarter of this year:
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