Once again, Apple blows away expectations and pumps out earnings which make long-term bulls on Apple Inc. (NASDAQ:AAPL) like me, smile.
The company reported third-quarter earnings per share of $2.58 U.S. beat analyst estimates of $2.07 U.S. These earnings per share were derived from total revenue of $59.7 Billion U.S. during the quarter, beating analyst estimates of $52.3 Billion U.S. Of the nearly $60 Billion U.S. in total revenue, approximately $26.4 Billion U.S. was derived from iPhone sales – a substantial sum.
Apple’s earnings report drove the company’s stock price above $400 U.S./share prompting the company to declare a stock split of 4:1. The company has done stock splits in the past to encourage retail investment in its company, and many analysts see this as a positive for its stock moving forward.
Hidden in the results is perhaps the juiciest bit of information investors ought to be aware of, in my opinion – the company’s cash position.
Apple is currently sitting on a cash pile of approximately $193 Billion U.S., an absolutely incredible sum. In the past, Apple has used its cash hoard to raise its dividend (which I expect it will continue to do), and even offer investors a special one-time dividend, or buyback stock. As I’ve stated before, Apple is a cash flow machine, so if you’re a long-term investor looking for growth, look no further.
Invest wisely, my friends.
