Apple is expected to announce $90 billion in stock buybacks and dividends!
The US companies follow the October-September period as their fiscal year. This means that their 1st quarter is October– December, the 2nd quarter falls between January – March, and so on.
Apple’s revenue for the Q2 of 2023 is anticipated to be $92.6 billion, a 4.8% drop from the previous Oct-Dec Q1 of $97.3 billion or a 5.5% fall. According to estimates, Indian IT sector stocks could fall for a subsequent trading day due to expected Apple results.
Apple Inc’s stock is down roughly 2% from its intraday high on Wednesday, which is presently trading near its all-time high of Rs $ 167.4. The company has provided 33.45 percent returns to its stakeholders over the last three months from Rs $ 125.07 to the current levels.
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Apple Inc is a technology company that creates, manufactures and sells smartphones, tablets, personal computers, and wearable devices. In addition, the company delivers applications and related services, as well as accessories and third-party digital content, and its own Apple products.
The business operates in America, Europe, the Middle East, Africa, and Asia-Pacific. Apple Inc is the largest company in the world with a market capitalization of $2.67 trillion making a significant impact on the S&P 500 with a weightage of 7.34% of the index’s market value.
Having a quick glance at the financials of the company, the revenue from operations of the company saw a movement from $ 117,154B in the December quarter to $ 90,146B in the September quarter. Total expenses over the period have increased, Moreover, the net profit figures, during the same period, from $29,998B to $ 20,721B.
The company’s profitability metrics such as the net profit margin took a shift slightly downward from 25.8 percent in FY20-21 to 24.4 percent during FY 21-22. On a contrasting note, the debt-to-equity ratio has slightly increased from 3.87 to 4.20 during the same period.
As per the latest news, the company is affected by a strong dollar, production issues in China affecting the iPhone 14 Pro and iPhone 14 Pro Max, and the overall macroeconomic environment.
According to a press statement, Apple is currently utilizing a cash reserve that peaked at $269 billion during the last ten years. It now has $165 billion in cash and $111 billion in debt, with a net cash balance of $54 billion, which is the lowest it has been in years.
According to stockbroker Wedbush, In an effort to boost its retail presence and diversify its supply chain, the firm is expanding its manufacturing and store presence in India. By 2025, the business may earn $20 billion in yearly revenue.
Written By Omkar
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