“Hon Hai Precision Industry Co. posted profit that beat analyst estimates as it prepares to release new versions of Apple Inc.’s iPhone,” Tim Culpan reports for Bloomberg. “”
“Second-quarter net income climbed 19 percent to NT$20.2 billion ($673 million), the Taipei-based company said in an e-mailed statement, beating the NT$18.2 billion average of 14 analysts’ estimates compiled by Bloomberg,” Culpan reports. “Operating profit climbed 50 percent, pointing to improved efficiency and the receipt of one-time payments for preparing Apple’s new iPhone that helped offset a drop in sales. Suppliers were due to commence mass production of the larger-screen smartphones last month, Bloomberg News reported in June, which means revenue won’t accrue to Hon Hai until the third quarter.”
Culpan reports, “‘These numbers indicate they received one-off payments from Apple to cover the development of the new products,’ Alberto Moel, who rates the stock hold at Sanford C. Bernstein in Hong Kong, said by telephone. ‘It also points to iPhone 6 being relatively easier to ramp up than earlier models.'”
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