Hon Hai Reports Better-than-expected Q3 and Oct. Results

Hon Hai Precision Ind. Co. Ltd., a global-leading EMS (electronics manufacturing services) provider, recently announced encouraging Q3 results, including Q3 net earnings of NT$30.75 billion (US$1.03 billion), up 81.6% quarter-on-quarter (QoQ), Q3  earnings per share (EPS) of NT$2.34 (US$0.08), and first-three-quarter earnings per share (EPS) of NT$4.91 (US$0.16).

Institutional investors said that Apple's new iPhone 5s and iPad Air are expected to drive Hon Hai's operation in the fourth quarter.

Terry Gou, Hon Hai's chairman, forecasted earlier that his company's EPS might surpass NT$8.03 (US$0.27) in 2013, according to institutional investors, meaning that in the fourth-quarter peak season the company will challenge a record single-quarter EPS of NT$3.13 (US$0.1) scored in the fourth quarter of 2012.

In the third quarter, Hon Hai had consolidated revenue of NT$919.3 billion (US$30.64 billion), up 2.64% QoQ, for profit margin of 7.07% (compared to 5.79% in the second quarter) and operating profit margin of 3.46% (2.07%), both being record highs and better-than-expected institutional investors' figures.

In the third quarter, Hon Hai booked a loss of only NT$32 million (US$1.1 million) from reinvested FIH Mobile Ltd., compared to NT$428 million (US$1.4 million) of a year earlier.

Hon Hai's consolidated revenue for October was NT$382.6 billion (US$12.75 billion), up 13.2% month-on-month (MoM) and a record monthly high this year. In conjunction with the increasing sales of Apple's new products, institutional investor said, Hon Hai's single-month revenue is expected to hit new highs in the fourth quarter, according to past history of the firm.