Apple (NASDAQ: AAPL) stock price resumed the upside momentum after generating stronger than expected revenue and earnings growth for the first quarter. Solid revenue growth from iPhone, Wearables, and Services helped in posting record revenue and earnings. In addition, the world’s largest tech company provided a strong outlook for the second quarter this year.
Apple stock price has more than doubled in the past twelve months. Market pundits expect the upside to continue over the coming months, with some analysts are expecting AAPL share price to hit $400 mark this year. Its shares are currently trading at around $320.
Q1 Beat Is Likely to Add to Apple Stock Price
The Cupertino-based company topped first-quarter revenue and earnings estimates by $3.41 billion and $0.45 per share. Its first-quarter revenue of $91bn increased 9 per cent from the year-ago period. The rebound in iPhone sales helped in beating estimates. Its iPhone revenue came in at $55bn in first quarter, up from the consensus for $51bn .
Its strategy to broaden its products and services is also working. The wearables, home, and accessories revenue stood at $10bn while services revenue reached a record level of $12.72bn. “We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said Tim Cook, Apple’s chief executive.
Profits also grew at a double-digit rate. Apple’s first-quarter earnings of $4.99 per share grew 19 per cent from the past year period.
Cash Returns Are Adding to Sentiments
Apple returned almost $25bn to investors through share buybacks and dividends during the first quarter. It currently offers a quarterly dividend of $0.77 per share. The cash returns are safe on the back of sustainable financial growth. The company expects to extend the financial growth momentum into the following quarters. It anticipates revenue of $67bn for the second quarter compared to the consensus of $60bn.