Apple buys back $14 billion of shares in two weeks since results

Fri Feb 7, 2014 11:30am IST

A worker cleans glass in front of an iPhone 5C advertisement at an apple store in Kunming, Yunnan province, in this October 27, 2013 file picture. REUTERS/Wong Campion/Files

A worker cleans glass in front of an iPhone 5C advertisement at an apple store in Kunming, Yunnan province, in this October 27, 2013 file picture.

Credit: Reuters/Wong Campion/Files

Related Topics

Stocks

   
Kishore Pandey, 82, lies on a bed as his daughter, Usha Tiwari, holds him and a priest stands by them (L) at Mukti Bhavan (Salvation House) in Varanasi, in the northern Indian state of Uttar Pradesh, June 19, 2014. REUTERS/Danish Siddiqui

Waiting to die at Salvation House

The city of Varanasi is Hinduism's holiest city and many Hindus believe that dying there and having their remains scattered in the Ganges allows their soul to escape a cycle of death and rebirth.  Slideshow 

REUTERS - Apple Inc (AAPL.O) has repurchased $14 billion of its stock in the two weeks since it reported disappointing first-quarter results, a company spokesman said.

Apple bought $12 billion of shares via an accelerated share repurchase program (ASR) and $2 billion of shares from the open market, the spokesman said. An ASR usually involves a company buying its shares from an investment bank.

The news was first reported by the Wall Street Journal, which interviewed Apple Chief Executive Tim Cook.

Cook told the paper that Apple was surprised by the 8 percent decline in its shares on January 28, the day after it reported quarterly results.

Apple shares fell after the company reported lower-than-expected holiday-period iPhone sales and issued a weak revenue forecast.

With the latest round of repurchases, Apple has bought back more than $40 billion of its shares over the past 12 months, which Cook said was a record for any company over a similar span. (link.reuters.com/xas66v)

"It means that we are betting on Apple," Cook said.

"It means that we are really confident on what we are doing and what we plan to do. We are not just saying that. We are showing that with our actions."

The share buyback was part of Apple's plan to repurchase $60 billion of its shares.

Excluding the latest purchases, Apple returned $7.7 billion to shareholders through dividends and buybacks in the December quarter, bringing the total under its capital return program to $43 billion.

Cook told the paper that Apple would issue updates on its buyback program in March or April.

(Reporting by Sakthi Prasad in Bangalore and Eddie Chan in Los Angeles; Editing by Gopakumar Warrier)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-Nepal Ties

REUTERS SHOWCASE

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

GM Recall

GM Recall

GM recalls 717,950 vehicles in U.S., not for ignition switches  Full Article 

Hyundai Motor Results

Hyundai Motor Results

Hyundai Motor Q2 profit slips as firmer won, U.S. discounts hurt  Full Article 

Nokia Results

Nokia Results

Nokia raises networks outlook after Q2 profit beats estimates  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Breakingviews

Breakingviews

Apple winds up earnings hope for new gadgets  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage