Bulletin: Apple Inc. Updates Its Capital Return Program As Second Quarter Revenue Rises 5%

SAN FRANCISCO (S&P Global Ratings) May 2, 2017--Apple Inc.'s (AA+/Stable/A-1+) revenues rose 5% year over year in the second quarter to $52.9 billion as 14% growth in Mac units and 18% expansion in services (including 40% growth in the App Store) offset continued weakness in Greater China, which declined 14% year over year, in addition to iPad declines of 12% year over year. The iPhone accounted for 63% of sales, and average selling price (ASP) rose nearly 2% to $655 year over year, offsetting a 1% drop in units sold. Adjusted EBITDA margin was near 36%, higher than a year ago, while free operating cash flow reached $10 billion for the quarter. Dividends and share repurchases totaled $10 billion, but

...SAN FRANCISCO (S&P Global Ratings) May 2, 2017--Apple Inc.'s (##+/Stable/A-1+) revenues rose 5% year over year in the second quarter to $52.9 billion as 14% growth in Mac units and 18% expansion in services (including 40% growth in the App Store) offset continued weakness in Greater China, which declined 14% year over year, in addition to iPad declines of 12% year over year. The iPhone accounted for 63% of sales, and average selling price (ASP) rose nearly 2% to $655 year over year, offsetting a 1% drop in units sold. Adjusted EBITDA margin was near 36%, higher than a year ago, while free operating cash flow reached $10 billion for the quarter. Dividends and share repurchases totaled $10 billion, but cash and investments grew by $11 billion to $257 billion (93% of which is held overseas). Debt outstanding totaled $98 billion, which includes $10 billion in commercial paper. Apple also announced an update to its capital return program, under which it will increase its share repurchase authorization...

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