Apple Inc. (AAPL – Free Report) encouraged investors with robust second-quarter fiscal 2018 results, after the closing bell yesterday. The technology giant topped the earnings and revenue estimates and projected continued sales momentum, easing concerns about weak demand for iPhone that have put shares of AAPL under pressure in recent months.

Additionally, Apple beefed up its plan to return cash to its shareholders through dividend hikes and additional buybacks that will provide further support to its stock price.

Apple Q2 Results in Focus

Earnings per share came in at $2.73, beating the Zacks Consensus Estimate by four cents and improving 30% from the year-ago earnings. Revenues grew 16% year over year, the fastest growth in more than two years, to $61.1 billion and slightly edged past the estimate of $61 billion. The impressive results were driven primarily by a 14% increase in iPhone revenues and a 31% increase in revenues from the service unit, which includes App Store, AppleCare, Apple Pay and Apple Music.

Apple sold 52.2 million iPhones in the fiscal second quarter, up from 50.8 million units in the year-ago quarter but below our consensus estimate of 52.94 million units. Revenues of iPad and other products, such as Apple TV, Watch, and AirPods, increased 6% and 38%, respectively, while Mac revenues growth was flat.

The gadget-maker foresees revenues in the range of $51.5-$53.5 billion for the third quarter of fiscal 2018. This is much above the current Zacks Consensus Estimate of $51.33 billion.

The company encouraged investors with a big dividend boost and stock buybacks following the tax break that will bring overseas cash back to the United States. It announced an additional massive share buyback program to the tune of $100 million on top of the existing $210 billion to be completed during the fiscal third quarter and boosted its quarterly dividend by 16% to 73 cents.

Market Impact

Following the results and big capital return program, the stock jumped more than 5% in aftermarket hours on elevated volumes.