Apple Inc. (AAPL) just reported its best quarter in company history. However, AAPL shares are barely budging after the historic announcement. In today’s blog, I’ll brief you on everything you need to know about the gadget giant, and explain whether AAPL is a buy, sell or hold at current prices.
During the fiscal first quarter, revenue climbed 1.7% year-on-year to $75.87 billion. This missed the $76.59 billion consensus estimate by a hair. Breaking it down, Apple sold 74.8 million iPhones, 16.1 million iPads and 5.3 million Mac computers.
Despite the sales miss, this was still the company’s best quarter on record. Earnings rose 1.9% year-on-year to $18.36 billion, or $3.28 per share. Analysts were looking for $3.23 EPS, so Apple posted a modest earnings surprise. Meanwhile, Apple continued to reward shareholders, returning $9 billion between stock buybacks and dividend payments.
Speaking of which, Apple just declared its next quarterly dividend. Shareholders of record on February 8 will receive $0.52 per share on February 11. At current prices, AAPL has a 2.1% annual dividend.
Looking ahead to the fiscal second quarter, Apple expects to bring in between $50 billion and $53 billion in revenue. This is just below analysts’ expectations of $55.64 billion in revenue. This was a generally solid report, so AAPL shares held steady after hours.
If you want to take a closer look at where Apple’s stock stands right now, I urge you to first look at my AAPL Portfolio Grader page. As you can see, the stock’s Quantitative Grade has been slipping of late, which means that downside risk has been increasing. At the same time, AAPL pulls off a solid B for its Fundamental Grade. To play it safe, I have AAPL marked as a hold in Portfolio Grader, which grades stocks according to their capital appreciation potential.
However, if you’re considering adding the stock for its dividend, AAPL earns top marks in Dividend Grader. While AAPL’s days as a growth stock may be numbered, it is still a solid income play.
P.S. For my Blue Chip Growth, Platinum Growth Club and Family Trust subscribers, please note that I have specific advice regarding AAPL for each unique service. Check the Buy List or Portfolio page for my current recommendation for AAPL.