Acer Inc, the world's fourth-biggest computer maker, could report increased profit for the third straight quarter as it gains global market share and earns more from sales of assets.
Second-quarter net income probably rose to NT$1.8 billion (US$55.7 million), or NT$0.79 per share, from NT$1 billion, or NT$0.46, a year earlier, according to the median estimate of five analysts surveyed by Bloomberg. Taipei-based Acer is required to announce results by the end of this month.
Company president Gianfranco Lanci is targeting a 4.5 percent to 5 percent share of the global market this year by expanding in the US and China. Lower prices and wireless Internet connections are driving demand for PCs, helping Acer take market share in the second quarter from bigger rivals Dell Inc, Hewlett-Packard Co and Lenovo Group Ltd, according to market researcher IDC Corp.
"Acer has gained market share and is making a profit, thanks to its efficient distribution channels," said Kevin Chang, an analyst with Credit Suisse First Boston in Taipei who has an "outperform" recommendation on the stock. Acer is "tapping a market that is expected to grow at least 20 to 30 percent in next two years."
In the second quarter, Acer's share rose to 4.4 percent from 3.1 percent a year earlier and 3.6 percent in the first quarter, IDC said.
Acer has been selling shares in firms such as Taiwan Semiconductor Manufacturing Co (台積電), the world's largest supplier of made-to-order chips, to bolster profit.
Second-quarter sales, reported earlier, rose by 35 percent to NT$65.7 billion from a year ago.
Shares in Acer have climbed 26 percent this year, outstripping the 0.05 percent decline in the benchmark TAIEX index.
Worldwide shipments of personal computers jumped 17 percent in the second quarter from a year earlier, IDC said in a July 18 report, exceeding its 12 percent growth projection made in May.
Acer, which makes almost two-thirds of its sales in Europe, the Middle East and Africa, continued "to be very successful" throughout these markets and saw "strong growth" in the Asia-Pacific region, the report said.
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