AAPL stock price rises on buyout, dividends increase

Apple, AAPL, Nasdaq, Corporate Earnings – Talking Points

  • Apple, Inc. posts earnings per share of $1.52 on revenue of $97.28 billion in Q2 2022
  • Buyback program increased by $90 billion, dividend increased from $0.22 to $0.23
  • Uncertain supply chain outlook could weigh on stock amid lockdowns in China

Apple Inc. released a slew of pink numbers in its second-quarter earnings report following a rebound in tech stocks, with the Nasdaq-100 (NDX) index posting a 3.48% gain at the closing bell. The iPhone maker posted second-quarter revenue of $97.28 billion, beating the Bloomberg consensus forecast of $93.98 billion. Earnings per share (EPS) of $1.52 also beat consensus guidance of $1.42.

Apple the stock rose 2.0% in after-hours trading, extending its 4.52% gain in the trading session. The company beefed up its $90 billion share buyback program and increased its dividend by 5%, from $0.22/share to $0.23/share. This seems to satisfy investors for now. Option pricing put today’s implied one-day move at 6.21%.

A joker remains, however. China’s commitment to its “Zero-Covid” policy will likely continue to strain Apple’s supply chain. Investors will be laser-focused on comments regarding these logistical challenges, as well as inflation concerns, during tonight’s earnings call. Apple’s policy of not offering advice during the Covid-19 pandemic continues, which will leave investors on the lookout for forecasts from analysts and big banks in the days and weeks ahead.

Apple One-Minute Chart

Chart created with TradingView

**Check out Amazon’s earnings and price reaction here**

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwater on Twitter

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