Hon Hai beats earnings forecasts, Reports Taipei Times

Hon Hai Precision Industry Co (鴻海精密) reported third-quarter earnings of NT$36.98 billion (US$1.33 billion), up 24 percent quarter-on-quarter and 20 percent year-on-year, beating its own and analysts’ expectations, the company said yesterday.

Strong sales to their biggest customer, Apple Inc, which released its latest iPhone in the period, drove the gains.

Earnings per share rose to NT$2.67 last quarter, up from NT$2.23 in the third quarter of last year.

“The reason we were able to beat our expectations was the strong demand for our smart handset products, while cloud and personal computing sales were as expected,” Hon Hai chairman Young Liu (劉揚偉) told a virtual investors’ conference. “Sales of components and other products were slightly down due to the parts shortage crisis.”

The company expects the shortages to continue through the first half of next year, Liu said.

“I expect Hon Hai’s sales to grow by more than 15 percent quarter-on-quarter, because we are entering the busy season, but our growth is limited by the parts shortage,” he said. “On a year-on-year basis, I expect that fourth-quarter [revenue] would slide by 3 to 15 percent.”

In addition to production being limited by shortages, fourth-quarter sales last year were also unusually high due to COVID-19-related delays pushing sales into the following quarter.

SOURCE

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