Bulletin: Apple Inc. Ratings Are Not Affected By New Capital Return Program; Its Second-Quarter Results Are Strong

SAN FRANCISCO (Standard&Poor's) April 28, 2015--Standard&Poor's Ratings Services said today that Cupertino, Calif.-based hardware and services provider Apple Inc.'s (AA+/Stable/A-1+) newly announced enhanced capital return program does not affect the ratings on the company. As part of the program, Apple will increase its share repurchase authorization by $50 billion to $140 billion. Apple also announced an 11% increase on its dividends. Net of share repurchases completed through the second quarter of fiscal 2015, we estimate that the company has about $60 billion of authorization remaining through March 2017. Apple also reported second-quarter results today, with revenues up 27% year over year to $58 billion. iPhone sales rose 40% year over year and made up a record

...SAN FRANCISCO (Standard & Poor's) April 28, 2015--Standard & Poor's Ratings Services said today that Cupertino, Calif.-based hardware and services provider Apple Inc.'s (##+/Stable/A-1+) newly announced enhanced capital return program does not affect the ratings on the company. As part of the program, Apple will increase its share repurchase authorization by $50 billion to $140 billion. Apple also announced an 11% increase on its dividends. Net of share repurchases completed through the second quarter of fiscal 2015, we estimate that the company has about $60 billion of authorization remaining through March 2017. Apple also reported second-quarter results today, with revenues up 27% year over year to $58 billion. iPhone sales rose 40% year over year and made up a record 69% of total revenues during the quarter, due in part to declining iPad sales and slower growth in services and other products. Adjusted EBITDA margin rose modestly to the 38% area, while free operating cash flow reached...

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