Apple, Inc. (NASDAQ:AAPL) reported fiscal year 2024 second-quarter results that exceeded muted expectations and its stock launched into a relief rally, with the upside also attributable to the shareholder returns it announced. Deepwater Asset Management’s Gene Munster offered his take on the results and the information the management shared on the earnings call.
Relief Rally: Munster called the 7%+ spike in Apple’s shares post the earnings release as a “relief rally.” Delving into the potential reasons, he outlined the following:
- Revenue and earnings coming basically in line with Street forecasts
- CEO Tim Cook’s comments on CNBC that June quarter revenue will be up in single-digit percentage points
- China sales declining by 8% year-over-year, less than the Whisper number (-12%)
- Massive buyback of $110 billion, more than the $90 billion the Street was anticipating
The June quarter guidance, according to Munster, was a win, given the Street was bracing for another quarterly ...