“With Apple shares getting crushed in late trading following a December quarter earnings report that featured lighter-than-expected revenues, disappointing iPhone sales and March quarter guidance well short of Street expectations, there is going to be increasing heat from investors to do something to boost shareholder sentiment on the stock,” Eric Savitz writes for Forbes.
“The company ended the quarter with $137 billion in cash and investments, or about 30% of the market cap after the sharp sell-off,” Savitz writes. “Now, the company does already pay a dividend of $2.65 a share, which at the stock’s newly reduced level is still a yield of only 2.3%… The company plans to spend $45 billion over the next three years buying back shares, but that’s not as impressive as it sounds, given that the company’s cash position increased by $16 billion in the December quarter alone. The Street would be a lot more impressed if the company bought back $45 billion or more of the stock in the next couple of quarters, rather than spread over three years.”
Savitz writes, “Apple just posted a quarter that investors hated; the company could win back some investor support with a more shareholder friendly approach to managing the balance sheet.”
Read more in the full article here.
Related articles:
Apple in danger of losing ‘Most Valuable Company In The World’ crown – January 24, 2013
What to do now if you own Apple stock – January 24, 2013
Topeka Capital cuts Apple price target to $888 from $1,111 – January 24, 2013
The Street beats Apple – January 24, 2013
Adam Lashinsky: What Apple’s earnings really mean, and what’s that $9 billion in ‘equipment’ for? – January 24, 2013
Apple’s results aren’t the total disaster implied by the market meltdown – January 24, 2013
Apple stock drops 12%, trips short-sale circuit breaker – January 24, 2013
Apple CEO Tim Cook: ‘No technology company has ever reported these kinds of results’ – January 24, 2013
Apple’s all-time record earnings drag down NASDAQ futures – January 24, 2013
Gundlach: Apple ‘a broken company’ – January 24, 2013
Apple’s all-time record quarterly earnings disappoint – January 23, 2013
Jim Cramer: ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore’ – January 23, 2013
After posting new all-time record revenue, Apple shares collapse in after-hours trading – January 23, 2013
MacDailyNews presents live notes from Apple’s Q113 Conference Call – January 23, 2013
Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013
