Shares of Apple Inc supplier Hon Hai Precision Industry Co Ltd (鴻海) yesterday plummeted 1.57 percent, despite the company reporting its first annual growth in revenue last month.
Hon Hai’s stock price dropped NT$1.20 to NT$75.
On Monday, the company reported that consolidated revenue rose 2.07 percent year-on-year to NT$300.47 billion (US$9.96 billion) last month, backed by strong demand for consumer electronics.
Last month’s revenue rose 3 percent from April, marking the second monthly growth and the best in four months.
From January to last month, the company’s accumulated revenue shrank 12.59 percent to NT$1.4 trillion from the same period last year.
Last month’s revenue slightly exceeded Yuanta Investment Consulting Co’s (元大投顧) expectations, Yuanta analyst Calvin Wei (魏建發) said in a research note yesterday.
For this month, revenue is likely to remain flat from last month, Wei said.
However, the company’s revenue for this quarter is expected to reach NT$890 billion, up 10 percent sequentially from NT$809 billion in the first three months of this year, he said.
Next quarter, revenue is expected to expand 10 percent sequentially, boosted by Apple’s launch of new products, including the iPhone 5S and low-cost iPhones, according to Yuanta’s forecast.
For the full year, Hon Hai’s earnings are expected to grow 4 percent annually to NT$8.1 per share, Wei said.
Aside from new products from Apple, Daiwa Capital Markets expects Sony’s new PlayStation 4 game console, Sharp’s and Vizio Inc’s new TVs, as well as recovering demand for PCs powered by Intel’s new Haswell chips to fuel Hon Hai’s revenue growth next quarter.