Hon Hai profit beats estimates as Apple’s hot-selling new iPhones boost sales

“Hon Hai Precision Industry Co. (2317), flagship of electronics maker Foxconn Technology Group, posted profit that beat analyst estimates as new products including Apple Inc. iPhones and Sony Corp. game consoles boosted sales,” Tim Culpan reports for Bloomberg News. “Third-quarter net income climbed 1.6 percent to NT$30.8 billion ($1 billion), according to a filing by the Taipei-based company to the Taiwan Stock Exchange today. The average of 13 analysts’ estimates compiled by Bloomberg was for profit of NT$25.5 billion.”

“New devices including the latest iPhone and preparation for the latest iPad helped revenue climb from the previous quarter,” Culpan reports. “Hon Hai’s third-quarter profit was probably boosted by so-called non-recurring engineering revenue, which is paid by clients after the supplier completes research and development on a new product, Vincent Chen, an analyst at Yuanta Financial Holding Co. in Taipei, said by telephone.”

“Third-quarter sales were NT$919 billion, the company reported Oct. 9, missing the NT$959.5 billion average of analyst estimates at the time. Operating profit rose to NT$31.8 billion during the period, it said today, compared with estimates for NT$29.4 billion,” Culpan reports. “Foxconn’s billionaire chairman Terry Gou has a long-term goal of 15 percent annual sales growth and on Oct. 31 said earnings-per-share this year will be at least as good as 2012.”

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