Apple's Total Cash Holdings Decline For The First Time Since Before Lehman

Tyler Durden's picture

Of all the charts from Apple's just released earnings' report, in which the company beat handily on both Revenue and EPS, driven exclusively by iPhone sales which came at 43.7 million units compared to 37.7 expected as iPad sales missed wildly at 16.4 million compared to the 19.7 million expected, such as this one showing the quarterly revenue...

 

... the margin breakdown

 

... and the unit sakes.

 

Perhaps this one is the most important: Apple's total cash and cash equivalents, for the simple reason that for the first time since before the Lehman collapse, Apple actually burned through cash, or $8.2 billion to be precise, which brought the company's cash hoard to just over $150 billion.

Why? Because of the very generous corporate dividend and buyback program, which is now about to increase by another 50% as AAPL just announced it would increase the amount of stock bought back from $60 billion to $90 billion.

And now, watch as Apple has no choice but to issue more and more debt to satisfy its investor dividend and stock buyback demands.

+++++++++++++++

At a glance:

The Earnings Headlines:

  • *APPLE 2Q SALES $45.65B , EST. $43.53B
  • *APPLE 2Q EPS $11.62 , EST. $10.17
  • *APPLE 2Q GROSS MARGIN 39.3%, EST. 37.7%
  • *APPLE SEES 3Q TAX RATE 26.1%
  • *APPLE SEES 3Q REV. $36B-$38B, EST. $37.88B
  • *APPLE SEES 3Q GROSS MARGIN 37%-38%, EST. 37.3%

The Capital Structure Shift:

  • *APPLE SETS 7 FOR 1 STOCK SPLIT, BOOSTS BUYBACK TO $90B
  • *APPLE BOOSTS QUARTERLY DIVIDEND TO $3.29-SHR FROM $3.05
  • *APPLE EXPECTS TO ACCESS PUBLIC DEBT MARKETS DURING 2014
  • *APPLE SEES ACCESSING PUBLIC DEBT MARKETS DOMESTICALLY, INTL
  • *APPLE SEES TERM DEBT SIMILAR TO AMOUNT RAISED IN 2013

We suspect that they will not be pricing this at 2.4% yield like the last one... (unless the ECB promises to provide 0% haircuts on it)...

 

The Unit Sales:

  • *APPLE SOLD 43.7M IPHONES IN 2Q, EST. 37.7M
  • *APPLE 2Q IPHONE ASP $596.2, EST. $610
  • *APPLE SOLD 16.35M IPADS IN 2Q, EST. 19.7M
  • *APPLE 2Q IPAD ASP $465.4, EST. $430
  • *APPLE SOLD 4.1M MACS IN 2Q, EST. 4.03M

 

Apple stock bounces - for now - just into the green for 2014...