Apple Repurchases $14 bln in Stock After Disappointing Results in Q3
Apple Inc (AAPL) posted relatively disappointing results for their first quarter. However, within a fortnight of publishing said results, Apple has spent $14 billion on buying back their stock, says a report from Reuters. Accelerated Share Purchase was used to buy $12 billion in stock, while the remaining $2 billion’s worth of shares were bought off the open market.
The first to report this was the Wall Street Journal after interviewing Tim Cook, the Chief Executive Officer of Apple.
Tim Cook said that Apple hadn’t been expecting the 8 percent decline in their share value and they were surprised that it happen. This 8 percent decline came on the back of their quarterly financial results, which they announced at the end of January at the beginning of the year.
The company achieved sales of iPhone units that were lower than expectations. Plus, revenue guidance from Apple wasn’t all that solid either.
The latest repurchase worth $14 billion means that Apple has bought back more than $40 billion of their shares over the past year. Cook says this repurchase level is a record on a global scale for a 12-month time frame and proves the company is confident in itself and its abilities.
The recent repurchase is part of Apple’s overall plan to buy back shares worth $60 billion.
Apple also gave back its stakeholders the amount of $7.7 billion via repurchases and dividends in the quarter ending December.
Tim Cook promised that Apple’s repurchase scheme would be updated later this year, whether in April or March, he wasn’t certain.
Apple’s shares started off the trading session at $521.38 and the stock has been trading between $385.1 and $575.14 over the past 12 months.