“Shares of Apple moved higher Monday on increased optimism that the tech giant could announce a record-breaking boost to its stock buyback and dividend plan when it posts quarterly results this week,” Kate Rooney reports for CNBC. “Apple shares rose nearly 2 percent while the broader market declined. The company had tumbled into correction territory in recent weeks on worries over weak iPhone sales. It reports earnings after the bell Tuesday.”

“The capital return plan is a part of the company’s redistribution of repatriated overseas profits,” Rooney reports. “This year’s GOP tax overhaul took the rate on repatriated cash from 35 percent tax rate to 15.5 percent. Apple said in January it expects to pay about $38 billion in taxes on what it plans to bring back to the U.S., implying that it will repatriate virtually all of its $250 billion in overseas profits.”

“Morgan Stanley analysts expect Apple, which has the biggest overseas bank account of any S&P 500 company, to increase the capital return program by $150 billion,” Rooney reports. “‘This would imply Apple repurchases $210bn in shares and pays $52bn in dividends over the next three years,’ Morgan Stanley equity analyst Katy Huberty wrote in a note to clients in April.”

Read more in the full article here.

MacDailyNews Take: Get ready for the AAPL buyback tsunami!

As always, we’ll bring your the results as soon as they are available (simply check our home page at 4:30pm EDT on May 1st).

We plan to cover the conference call with live notes as usual. That link will appear on our home page around 4:45pm EDT on May 1st.

Analysts expect Apple’s results to show iPhone growth problem and Cook’s plan to fix it – April 30, 2018
Apple to release Q218 earnings, webcast live conference call on May 1st – April 3, 2018