A few hours ago, Apple released the record financial results, in terms of the company's turnover throughout the last quarter of the calendar year, due to the pull in Christmas sales.
But on the other hand, the company anticipated lower results in the current quarter. This suggested that the share price could fall in anticipation of these unfavorable results. Almost 24 hours after the presentation of results, Apple's stock is at similar figures to the day of the presentation of results. Analysts believe that the decline in billing for this quarter was already discounted from the share price.
Therefore, Apple must be satisfied with the global evolution of the company and especially its CEO Tim Cook. According to Reuters, the increase in the prices of iPhones, together with the company's plans for its cash reserve in foreign markets, gave investors a chance as to the value of the share:
Thrivent financial analyst Peter Karazeris said the low-income forecast was expected by many analysts and investors following a series of "credible reports" that Apple had cut orders for parts.
I'm glad we got the bad news regarding stock. It was probably a bit of an exaggeration… We are now focusing on metrics that really matter, like free cash generation and returns to shareholders.
thrivent he holds Apple shares in his portfolio and his forecast is to hold them.
On the other hand, Investors positively value reducing their net cash balance to zero. In the words of Luca Maestri, Apple's CFO:
Over time, we are trying to target a capital structure that is roughly network neutral. We will have roughly the same level of cash and debt on the balance sheet. We are going to lower that balance from 163.000 million to zero.
On the other hand, in the words of Morningstar Inc analyst Brian Colello:
The cash plans are a "nice surprise," although this goes a bit against Apple's historically conservative capital structure.
Finally, Mr. Miller, Managing Partner of Gullane Capital Partners, and investor in Apple:
The change to a level balance was good news. Let's face it, this cash hasn't been doing anything for us in the last six years.
For those unfamiliar, Apple plans to spend all the money saved, what we do not know are the projects where Apple will invest.
