All eyes were on Apple after the bell on Tuesday for the iPhone maker's second quarter earnings report.
The Cupertino, Calif.-based corporation reported second fiscal quarter earnings of $9.5 billion, or $10.09 a share (statement).
Non-GAAP earnings were $10.16 a share on a revenue of $43.6 billion.
Thomson Reuters had projected Apple earnings of $10 a share on a non-GAAP basis in the second quarter on revenue of $42.3 billion.
Given the low expectations going into Apple's report, investors cheered the results in after hours trading.
As for the product portfolio, Apple's three core products held steady for the most part.
The iOS giant sold 37.4 million iPhones (compared to 35.1 million during the same period last year) as well as 19.5 million iPads (compared to 11.8 million during the same quarter last year).
But Apple sold "just under" four million Macs, compared to roughly four million flat during the second fiscal quarter of 2012.
Speaking on a conference call with analysts, CEO Tim Cook addressed the Wall Street confidence crisis and said:
Our revenue for the first half was over $98 billion. And our net income was over $22 billion. During that time we sold 85 million iPhones and 42 million iPads. These are very large numbers, unimaginable even to us just a few years ago. Despite producing results that met or beat our guidance as we have done consistently, we know they didn't meet everyone's expectations. And though we've achieved a credible scale and financial success we acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012.
The decline in Apple's stock price over the last couple of quarters has been very frustrating to all of us. But Apple remains very strong and we will continue to do what we do best---we can't control items such as exchange rates and world economies and even certain cost pressures---but the most important objective for Apple will always be creating innovative products. And that is directly within our control. We will continue to focus on the long-term and we remain very optimistic about our future.
We see great opportunities in front of us particularly given the long-term prospects of smartphone and tablet markets the strength of our incredible ecosystem which we plan to continue to augment with new services, our plans for expanded distribution, and the potential of exciting new product categories.
For the third quarter, Wall Street is looking for earnings of $8.81 a share (non-GAAP) on revenue of $38.26 billion.
But it looks like Apple missed the outlook with a revenue guidance range of $33.5 billion to $35.5 billion.
Apple also announced it is boosting the stock buyback program by using $100 billion total under the revised capital return program plan by the end of calendar year 2015.
That's a $55 billion increase from what has been previously announced, translating to an average rate of $30 billion per year between August 2012 through December 2015.
Cook added in a separate statement that Apple is "very fortunate to be in a position to more than double the size of the capital return program we announced last year."
Apple's Board of Directors also approved a 15 percent increase in quarterly dividend. Set now at $3.05 per common share, that amount will be payable on May 16 to shareholders of record as of the close of business on May 13.
Screenshot via Apple Investor Relations