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Apple earnings beat market expectations (by a little)

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Apple has announced financial results for its fiscal 2016 fourth quarter that ended Sept. 24. The company posted quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share.

These results compare to revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share, in the year-ago quarter. Gross margin was 38% compared to 39.9% in the year-ago quarter. International sales accounted for 62% of the quarter’s revenue.

“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” said Tim Cook, Apple’s CEO. “We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24% to set another all-time record.”

“We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter,” said Luca Maestri, Apple’s CFO. “We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program.”

Apple is providing the following guidance for its fiscal 2017 first quarter:

° Revenue between $76 billion and $78 billion;
° Gross margin between 38% and 38.5%;
° Operating expenses between $6.9 billion and $7 billion;
° Other income/(expense) of $400 million;
° A tax rate of 26%.

Apple’s board of directors has declared a cash dividend of $0.57 per share of the Company’s common stock. The dividend is payable on Nov. 10, 2016, to shareholders of record as of the close of business on Nov. 7, 2016.

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