Tag Archives: aapl

Cash King Apple Leads All Companies In Stock Buybacks, Dividends

Apple ( AAPL ) led the S&P 500 in stock buybacks and dividends in the fourth quarter, as the information technology sector overall led the field. Companies in the S&P 500 spent $136.6 billion on share buybacks during the fourth quarter, up 5.2% year over year, says a report from FactSet Research . It was the sixth-highest quarterly amount since FactSet began tracking the data at the start of 2005. As the top spender, Apple repurchased $6 billion worth of shares in Q4. Apple was also the leader in Q3 stock buybacks , at a whopping $15.3 billion in repurchases. The information technology group led all industry sectors in the S&P 500, with $33.2 billion spent on buybacks in Q4. Four of the top 10 companies were in the information technology sector, as FactSet defines it: Apple, Microsoft ( MSFT ), Oracle ( ORCL ) and Visa ( V ). Information Technology and Consumer Discretionary sectors led buyback spending in Q4. https://t.co/tTsQkCDffj pic.twitter.com/Zn2aeo46yL — FactSet (@FactSet) March 18, 2016 Following Apple for second place was United Technologies ( UTX ) at $5.1 billion, then Microsoft at $3.6 billion and Oracle at $3.25 billion. In Q3, Microsoft spent $4 billion in buybacks, while Oracle spent $3 billion. Apple also led in quarterly dividends, with a cash distribution of $2.97 billion. Microsoft was close behind at $2.86 billion, followed by General Electric ( GE ) at $2.3 billion. General Electric came in sixth place in stock buybacks, at more than $3 billion. Share repurchase programs are a popular way of returning capital to shareholders, tending to boost a stock and per-share earnings, while dividends put cash in the hands of shareholders. In 2015, there were 70 activist campaigns in which a dissident objective was to return cash via dividends and/or buybacks, up 37% from 2014, Factset said in its report. This represented the highest total since FactSet began tracking the data in 2005. Of the 70 campaigns, activists were successful in 31, which was a record high.

Upgrade Trend Good For Verizon, AT&T Until iPhone 7 Refresh: UBS

Wireless trends point to strong first-quarter profits at AT&T ( T ) and Verizon Communications ( VZ ), says UBS, though Apple ’s ( AAPL ) expected launch of the iPhone 7 in the fall looms as a wild card for phone upgrades. UBS analyst John Hodulik says the phasing out of wireless contracts at AT&T and Verizon, along with the shift to monthly installment plans for mobile phone purchases, has boosted profits. The EIP (equipment installment plans) boost earnings by booking equipment revenue on the date of sale, though monthly payments may continue for 20 months or more. Neither AT&T or Verizon offer phone leasing plans, though T-Mobile US ( TMUS ) and Sprint ( S ) do. Less aggressive marketing by Sprint in early 2016 also bodes well for the wireless industry, said Hodulik in a report. “We believe Sprint’s recent commentary regarding its focus on free cash flow generation and subscriber stability, combined with our outlook for fewer upgrades, set the industry up for a few quarters of solid earnings results,” wrote Hodulik. “These trends should continue until the expected Apple iPhone 7 refresh later this year, whose impact on volumes remains a wildcard. … According to Gartner data, Apple’s iPhone accounts for around 50% of premium smartphone sales in the U.S. or roughly one-third of all phone sales.” Verizon is slated to kick off Q1 telecom earnings when it reports April 21. Consumers have been upgrading to new smartphones at a slower pace, says Hodulik. “Subscribers are electing to hold their devices longer and save money once the handset is fully paid off,” he added. “Postpaid subscribers now keep their devices for 3.3 years on average, up from 2.8 years in 2011. This is putting pressure on upgrade rates, which is in turn driving lower disconnects and fewer gross subscriber adds. We believe this will be a key theme for Q1 earnings, driving another strong quarter of profitability for the sector, especially at AT&T and Verizon.”

Self-Driving Cars: China’s Come To U.S.; Automakers Adopt Braking

Self-driving cars are inching forward with developments this week — 20 automakers say they’ll add automatic emergency braking by 2022, and China’s Baidu ( BIDU ) will reportedly soon start testing its autonomous cars in the U.S. As about the whole car industry gets into the game, the quest to create a self-driving vehicle puts Chinese Internet search leader Baidu in a tech-development drag race with global search leader Google. The unit of parent firm Alphabet ( GOOGL ) has been developing self-driving vehicles for years. Baidu aims to become a cutting-edge automaker and have its automated vehicles in distribution in 2018, says a report Thursday in the Wall Street Journal. The latest  move by Baidu  comes as U.S. auto safety regulators say that 20 automakers have pledged to make automatic emergency braking a standard feature on nearly all U.S. vehicles by 2022, a move that could prevent thousands of rear-end accidents each year – and ensure that the companies aren’t left in the dust as car technology advances. The U.S. National Highway Traffic Safety Administration (NHTSA) hailed the voluntary commitment by 20 automakers representing more than 99% of U.S. vehicle sales. Companies including General Motors ( GM ), Ford ( F ), Toyota ( TM ), Volkswagen ( VLKAY ), Daimler ( DDAIF ), Nissan Motor ( NSANY ) and Honda Motor ( HMC ) have signed on. While Apple ( AAPL ) has been widely reported to be among those in the self-driving car game, the company hasn’t confirmed any involvement. Baidu stock rose 0.2% to 183.44  in the stock market today . Apple stock fell 0.2% to 105.80. Mobileye ( MBLY ) stock appeared to benefit after news of the emergency braking standard emerged on Wednesday, soaring 9.5%. Mobileye, a maker of autonomous car technology, saw its stock rise 1.4% Thursday. Since its IPO last August, Mobileye stock has jumped 48% from its IPO price of 25. Mobileye has said millions of vehicles include its system as it works with BMW and automakers such as Tesla Motors ( TSLA ), GM and Honda. Along with Mobileye, NXP Semiconductors ( ), Nvidia ( NVDA ), Ambarella ( AMBA ) and others are partnering with automakers to develop chips and other technology needed for self-driving cars. German automaker BMW said in September 2014 that it had teamed up with Baidu to create self-driving cars. At that time, BMW said its project with Baidu was designed to achieve “accident-free mobility” while enhancing comfort and efficiency for drivers in China, the world’s top car-producing nation. Baidu already provides Internet cloud services to BMW as well as mapping services through Baidu Maps, BMW said then. On Tuesday, the chief of self-driving car development at Google told a U.S. Senate panel that “Congress has a huge opportunity to help ensure that self-driving cars can be safely deployed at scale,” as the Alphabet subsidiary and others attempt to fast-track development of the technology. Chris Urmson, director of the self-driving car program at Google X, was among those who testified at the hearing that was convened by U.S. Sen. John Thune, R-S.D., chairman of the Senate Committee on Commerce, Science and Transportation. The hearing came a month after one of Google’s self-driving cars hit a municipal bus in California. Google has said new software changes will avoid future incidents. In a report last year, Boston Consulting Group cautioned that self-driving cars won’t likely appear widely on roads until 2025, but the technology could emerge sooner in automated ride-sharing services in city centers. This week’s U.S. government hearing included testimony from GM and ride-sharing company Lyft, which are in a partnership to develop self-driving cars. Driverless trucks and cars will be tested soon in the U.K., according to a BBC report on Thursday.