“In January, Apple announced plans to bring home about $245 billion in foreign profits banked overseas to fund capital expenditures and other uses,” Seitz reports. “‘We think Apple’s solid free cash flow and $163 billion net cash balance will result in a meaningful step-up in capital allocation next quarter,’ RBC Capital Markets analyst Amit Daryanani said in a report Friday. ‘”Given limited appetite to do deals and benefits from current tax reform, we expect Apple to return much of the ongoing free-cash-flow generation back to shareholders.'”
“Daryanani believes Apple will continue to avoid doing large acquisitions,” Seitz reports. “Daryanani also ruled out Apple doing a special dividend from the foreign profits, noting that Apple CEO Tim Cook has explicitly stated that he is ‘not a fan of special dividends.'”
Read more in the full article here.
MacDailyNews Take: Yup.
Think buybacks and dividends, not major acquisitions. — MacDailyNews, January 8, 2018
Another $125 billion in buybacks would be seismic. – MacDailyNews, November 18, 2016
Interns: Fire that thing up! Prost, everyone!