FBR: Apple Just Delivered 'One-Two Punch Bulls Were Hoping For'

Apple Inc. AAPL's recent quarterly results and dividend boost are "the one-two punch bulls were hoping for," an analyst said Monday. FBR's Daniel H. Ives reiterated an Outperform rating on Apple and noted that its 61 million iPhone units shipped in the recent quarter were nearly 9 percent more than Wall Street expected.

Apple traded in the extended session recently at $134.37, up more than 1 percent. Shares are flat on Tuesday.

Apple forecast fiscal third-quarter revenue of about $47 billion, in line with Street estimates and down about 19 percent from second quarter revenue of $58 billion.

Ives noted that "importantly," Apple boosted its quarterly dividend 11 percent. Ives called the increasing proportion of Apple's revenue derived from sales in China "another growth contributor."

Apple's revenue from China increased 71 percent in the second quarter, to $16.8 billion, or nearly 30 percent of Apple's total revenue. Ives said Apple is well-positioned for further growth in China as well as from its apps business, and Apple Pay service.

"Apple Watch, its solid iPhone product cycle, and under-penetrated geographies remain front and center over the coming quarters," he added.