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Live: Apple Q2 results are in. Shares to be split 7 for 1.

April 23, 2014: 4:00 PM ET

Apple reports earnings of $11.62 per share on sales of $45.6 billion, a Q2 record.

Screen Shot 2014-04-23 at 11.19.16 PMFORTUNE  -- The numbers are in, and they're surprisingly good. Stronger than expected iPhone sales seem to have boosted both the gross margin and the bottom line. iPad sales were a little weak, due largely to channel inventory changes. Mac sales were up and the iPod business, as expected, has pretty much collapsed. Apple press release.

In a separate press release, the company announced a 7 for 1 stock split, effective June 2, something that doesn't change the math but which should make the stock affordable for more investors. The board of directors also increased its share repurchase authorization to $90 billion (from $60 billion) and declared a dividend of $3.29 per common share, an increase of about 8%, payable on May 15. 

The numbers:

  • Revenues: $45.642 billion, up 4.7% year over year
  • Profits: $10.223 billion
  • Earnings per share: $11.62, well above consensus
  • Gross margin: 39.3% (well above guidance)
  • iPhones: 43.719 million units, up 17%, better than expected
  • iPads: 16.35 million, -16% (lower than expected)
  • Macs: 4.136 million, up 5%
  • iPods: 2.761 million, down 51% (as expected)
  • iTunes, Software and Services: $4.573 billion, up 11%
  • Accessories: $1.419 billion, up 3%
  • Revenue guidance for Q3: $36 to $38 billion
  • GM guidance: 37%-38%

"We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Tim Cook. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market."

"We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said outgoing CFO Peter Oppenheimer. "That brings cumulative payments under our capital return program to $66 billion."

Apple's (AAPL) share closed Wednesday at $524.75. They popped more than $40 in after hours trading.

A conference call with analysts is scheduled to begin at 5:00 p.m. ET, 3:00 p.m. PT. Click here: Listen to the Webcast.

Below: the average estimates of 41 analysts in Fortune's poll.

Sales: $43.78 billion
EPS: $10.41
iPhones: 38.25 million units
iPads: 19.35 million
Macs: 4.09 million
iPods: 3.06 million
iTunes, software and services: $4.56 billion
Accessories: $1.40 billion
Gross margin: 37.8%

Below: Notes from the conference call.

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