Apple Stock Rises on $111.2 Billion Revenue Beat

Apple stock fell about 0.9% after hours even after the company reported second-quarter adjusted earnings per share of $2.01 on Thursday, above the $1.96 estimate. Revenue came in at $111.2 billion, ahead of the $109.66 billion consensus, giving shareholders a clean beat on both lines before John Turnus takes over as chief executive in September.

iPhone and China carry the quarter

$56.99 billion in iPhone revenue led the quarter, with services at $30.98 billion and Greater China at $20.50 billion. Apple’s largest businesses still carried the most weight in the results, and the gap between the reported figures and estimates showed that demand held up across the core product and services mix.

$8.40 billion in Mac revenue and $6.91 billion in iPad revenue added to the quarter, while wearables, home and accessories generated $7.90 billion. Josh Lipton put the result plainly on air: “Let's get you those numbers.” He followed with, “So that's beats on the bottom and the top.”

Apple's $100 billion buyback

$100 billion in additional stock repurchases was authorized by the board, extending capital returns at a time when the stock still traded lower in after-hours action. Josh Lipton described the move as “The Board of Directors authorizing an additional program to repurchase up to 100 billion of the company's common stock.”

0.9 percent after-hours weakness is the contradiction in the print: the quarter beat estimates, but the shares still did not hold higher in immediate trading. For investors, that leaves two things in focus right away — whether the buyback supports the share price and how Turnus handles the handoff from Tim Cook in September.