Apple results map out a recovery showing its slowdown is easing. $110 billion buyback, the largest in US history is a win. Investment banks reiterate Apple as a BUY

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▪ Apple raised its dividend by 4% to 25 cents a share, and it announced a larger-than-expected share buyback, planning to buy back an additional $110 billion in more stock. This is the biggest buy back in history. Analysts expected $90 billion.

▪ Apple's earnings amounted to $1.53 a share in the second quarter, and that was slightly (~1.9%) better than the $1.50 EPS analysts estimated

▪ Apple's revenue fell to $90.753B. But it fell less than expected. The market expected revenue to fall from $119.575B in Q1 to $90.33B in Q2.

▪ Apple's sales (revenue) have declined in 5 out the 10 of last quarters, hurt by a sluggish smartphone market, increasing competition in China and a lack of innovation in their new devices. Just in Q2, iPhone sales dropped by 10%. Back in February Apple warned analysts that revenue in Q1 would 5% less than a year earlier.

▪ Apple will look to ramp up sales with a line of innovative products, at its Apple event on May 7. Apple is expected to update its iPad line for the first time in 18 months. That's a record-setting drought for new versions of the iPad, which Steve Jobs first introduced in 2010.

▪ Apple is betting that the new models, with faster chips and revamped accessories, will reinvigorate iPads.

▪ Most sophisticated investors are excited about the trajectory of Apple’s services division growing stronger than expected over time with revenue hitting an all time record indeveloped and emerging markets.

▪ So although, product revenue growth has been patchy, Apple Services revenue now accounts for 19% of Apple's revenue and the division packs a lot of punch, operates with a profit margin of 73%

Apple services include Apple Finance, iCloud, Apple Music, Apple TV, Fitness, AppleCare, Apple

Note, these figures below are from Bloomberg, and were last updated in Q1 but reflect the high margin for services revenue and that services revenue continues to hit new records. This is a trend that’s likely to continue.

9 investment banks and investment houses reiterated Apple as a buy after its earnings results. 4 reiterated Apple as a hold, and one investment bank, Barclays, reiterated Apple as a sell.