Apple (NASDAQ:AAPL) is a company and stock that requires no introduction, having established itself as a designer, manufacturer, and marketer of some of the most recognizable and profitable pieces of hardware on the planet. The company released its second quarter (Q2) fiscal 2024 earnings on Thursday, May 2, 2024. What should investors takeaway from these earnings? Is Apple stock worth buying in May? Let’s jump in.
“During the quarter,” said Apple CEO Tim Cook. “We were thrilled to launch Apple Vision Pro and to show the world the potential special computing unlocks.” Tim Cook also teased yet another product launch at the Worldwide Developers Conference in June.
The company reported net sales of $90.8 billion in the second quarter of fiscal 2024. Net sales in the Products category were reported at $66.8 billion – down from $78.0 billion in the second quarter of fiscal 2023. Meanwhile, Apple’s Services segment delivered all-time revenues of $23.8 billion. That was up from $20.9 billion in the previous year.
Net income for the first six months of fiscal 2024 was reported at $57.5 billion – up from $54.1 billion in the previous year. Moreover, diluted earnings per share rose to $3.71 compared to $3.41 in the first six months of fiscal 2024.
Apple’s board authorized an eye-popping $110 billion share repurchase program, a new share buyback record in the United States market. It raised its quarterly dividend for the 12th straight year. Shares of Apple currently possess a price-to-earnings ratio of 26 at the time of this writing. That puts this tech giant’s stock in favourable value territory at the time of this writing.
