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Wednesday, April 23, 2014, 01:42 pm PT (04:42 pm ET)

Apple announces 7-for-1 stock split, buybacks bumped to $90 billion

Apple on Wednesday released its quarterly earnings for the second quarter of 2014, announcing a seven-for-one stock split coming in June, as well as a boost to share buybacks now capped at $90 billion.

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After announcing earnings of $45.6 billion in revenue and $10 billion in profits, Apple announced a split granting each AAPL stock owner six shares for each share owned, while its board raised buyback authorization to $90 billion.

Apple's 7-for-1 stock split will take place June 2, 2014, awarding each shareholder six additional shares of AAPL stock. Split-adjusted trading will begin on June 9.

"We are announcing a significant increase to our capital return program," said Apple CEO Tim Cook. "We're confident in Apple's future and see tremendous value in Apple's stock, so we're continuing to allocate the majority of our program to share repurchases. We're also happy to be increasing our dividend for the second time in less than two years."

The substantial repurchase authorization represents a $30 billion bump from its initial $60 billion plan, though the company warns that this coming quarter may see a drop in revenue from $38 billion to $36 billion.

In addition to the split, Apple's board approved an 8 percent increase its quarterly cash dividend up to $3.29 per share. That's up from the previous $3.05 per quarter.

The news juiced after-hours action, with AAPL trading up $42.17, or 8.31 percent as of this writing.