Apple to return US$100b in cash to shareholders by end of 2015
Source: Agencies |
April 25, 2013, Thursday
|
Print Edition
Print Edition
APPLE is opening the doors to its bank vault, saying it will distribute US$100 billion in cash to its shareholders by the end of 2015. At the same time, the company said revenue for the current quarter could fall from the year before, which would be the first decline in many years.
Apple CEO Tim Cook also suggested the company won't release any new products until the fall, contrary to hopes that there would be a new iPhone and iPads out this summer.
Apple Inc on Tuesday said it will expand its share buyback program to US$60 billion - the largest buyback authorization in history. It is also raising its dividend by 15 percent from US$2.65 to US$3.05 per share. That equates to a dividend yield of 3 percent at current stock prices. The average yield for the 20 largest dividend-paying companies in the US is 3.1 percent, according to Standard & Poor's.
Investors have been clamoring for Apple to give them access to its cash hoard, which ended in March at an unprecedented US$145 billion. Apple's tight grip on its cash, along with the lack of ground-breaking new products has been blamed for the steep decline in its stock price over the winter.
News of the cash bonanza coincided with the company's release of a poor quarterly outlook for the three-month period that ends in June.
Apple's results beat the consensus estimate of analysts who follow the company, though it posted its first profit decline in 10 years.
Net income was US$9.5 billion, or US$10.09 per share, down 18 percent from US$11.6 billion, or US$12.30 per share, in the same period from a year ago.
Revenue was US$43.6 billion, up 11 percent from last year's US$39.2 billion.
Analysts were expecting earnings of US$9.97 per share on revenue of US$42.3 billion, according to FactSet.
For the quarter that just started, Apple said it expects sales of US$33.5 billion to US$35.5 billion. In the same quarter last year, sales were US$35 billion. Wall Street was expecting sales of US$38 billion.
The June quarter is generally a weak one for Apple, since consumers tend to wait for the next iPhone, which the company usually releases in the fall. But a year-over-year decline is a signal that Apple is failing to capitalize on the continued growth of smartphone sales which are tapering off in US and other mature markets.
Apple CEO Tim Cook also suggested the company won't release any new products until the fall, contrary to hopes that there would be a new iPhone and iPads out this summer.
Apple Inc on Tuesday said it will expand its share buyback program to US$60 billion - the largest buyback authorization in history. It is also raising its dividend by 15 percent from US$2.65 to US$3.05 per share. That equates to a dividend yield of 3 percent at current stock prices. The average yield for the 20 largest dividend-paying companies in the US is 3.1 percent, according to Standard & Poor's.
Investors have been clamoring for Apple to give them access to its cash hoard, which ended in March at an unprecedented US$145 billion. Apple's tight grip on its cash, along with the lack of ground-breaking new products has been blamed for the steep decline in its stock price over the winter.
News of the cash bonanza coincided with the company's release of a poor quarterly outlook for the three-month period that ends in June.
Apple's results beat the consensus estimate of analysts who follow the company, though it posted its first profit decline in 10 years.
Net income was US$9.5 billion, or US$10.09 per share, down 18 percent from US$11.6 billion, or US$12.30 per share, in the same period from a year ago.
Revenue was US$43.6 billion, up 11 percent from last year's US$39.2 billion.
Analysts were expecting earnings of US$9.97 per share on revenue of US$42.3 billion, according to FactSet.
For the quarter that just started, Apple said it expects sales of US$33.5 billion to US$35.5 billion. In the same quarter last year, sales were US$35 billion. Wall Street was expecting sales of US$38 billion.
The June quarter is generally a weak one for Apple, since consumers tend to wait for the next iPhone, which the company usually releases in the fall. But a year-over-year decline is a signal that Apple is failing to capitalize on the continued growth of smartphone sales which are tapering off in US and other mature markets.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
