A Look Back at Q2 Earnings
Apple, alongside Amazon, contributed to a positive market trend following Jerome Powell’s reassuring remarks on rate hikes. Apple shattered Q2 expectations by achieving a record high EPS of $1.53, surpassing estimates and marking a 1% increase from the previous year. Despite a slight decline in sales from the year before, Apple showcased robust performance with revenue records in numerous international markets.
Dividend Increase and Share Buybacks
Apple demonstrated continued confidence in its business by authorizing an additional $110 billion for share repurchases. The tech giant also announced a 4% increase in dividends to $0.25 per share quarterly. With plans for more annual payout bumps, Apple aims to maintain a cash-neutral position.
Projections for Growth
Zacks estimates forecast a positive trajectory for Apple, expecting annual earnings to rise by 6% in fiscal 2024 and another 8% in FY25 to $7.10 per share. Total sales are predicted to remain steady this year but are projected to increase by 5% in FY25 to $403.72 billion.
Investment Outlook
Despite concerns over market monopolies and regulatory challenges, Apple continues to expand in foreign markets. While the stock currently holds a Zacks Rank #3 (Hold), potential buying opportunities may lie ahead as Apple navigates through global market dynamics.
The Bitcoin Factor
While Apple’s performance remains strong, Bitcoin has proven to be a lucrative investment, outperforming other asset classes in recent years. With significant returns recorded during past presidential election cycles, including a remarkable surge in 2020, Bitcoin remains a favorable investment choice.