Apple is estimating a hard impact of Trump's tariff play in the latest quarter. As per the company CEO Tim Cook, the imposition of planned US tariffs on foreign imports might add an additional cost of $900 million to the company's bottom line. This comes at a time when major companies are bracing for the impact of US tariff policies imposed last month.
“We estimate the impact to add $900 million to our costs,” he said in a recent earnings call. “This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit the June quarter,” Cook cautioned.
The tech giant posted a revenue of $95.4 billion in the quarter ending March, marking a 5% year-on-year (YoY) surge. Earnings per share stood at $1.65, recording a YoY surge of 8%.
Apple's board has announced a cash dividend of $0.26 per share, which is a 4% increase. Shareholders will be receiving the payment on May 15. "The board of directors has also authorized an additional program to repurchase up to $100 billion of the Company’s common stock," the company said in a release.
“Our March quarter business performance drove EPS growth of 8 percent and $24 billion in operating cash flow, allowing us to return $29 billion to shareholders........our installed base of active devices once again reached a new all-time high across all product categories and geographic segments," said Kevan Parekh, Apple’s CFO.
Apple Shares
On a year-to-date basis, Apple shares witnessed a drop of nearly 30% on Nasdaq before recovering some of its losses.
Last month, the tech giant's share price plummeted by over 20% after Trump announced the imposition of tariffs. However, the stock gained momentum again after POTUS eased down some tensions around trade wars. From implementing a 90-day pause on tariffs to hinting at striking a trade deal with China, tech stocks experienced a major breather after these developments.
In the last 5 trading sessions, Apple shares have experienced an uptrend. However, the stock is still down from its 52-week-high of $260.10 price level.
