|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||119.00 - 122.00|
|52 Week Range||72.50 - 134.50|
|Beta (5Y Monthly)||0.78|
|PE Ratio (TTM)||16.55|
|Earnings Date||May 14, 2021|
|Forward Dividend & Yield||4.20 (3.50%)|
|Ex-Dividend Date||Jul 23, 2020|
|1y Target Est||88.95|
(Bloomberg) -- IPhone assembler Hon Hai Precision Industry Co.’s first-quarter revenue jumped 44% on robust demand for Apple Inc.’s new 5G devices and other gadgets that help consumers stay connected at home during the pandemic.Revenue in the three months through March rose to NT$1.34 trillion ($47 billion), the Taiwanese manufacturer reported Tuesday, in line with the average analyst estimate. Sales in March climbed to NT$441.2 billion. The stock jumped as much as 1.6% in Taipei on Wednesday.The strong showing from the world’s largest contract electronics maker suggests demand for iPhones, gaming consoles and servers remains robust as consumers snatch up devices for remote work, home-schooling and entertainment needs. Companies are also spending on technology, expanding data-center infrastructure to better serve customers’ online activities.However, Hon Hai warned in late March that component shortages could persist until 2022 and affect under a tenth of its shipments, amplifying concerns that a global chip crunch could extend well beyond this year.Shares of Hon Hai gained 60% over the past six months as the company announced its ambitions to venture into the electric-vehicle business, inking manufacturing deals with partners such as Byton Ltd. and Fisker Inc.Annual shipments of Hon Hai’s EVs may reach 1.1 million units, or around 10% of global share, by 2025, Morgan Stanley estimated in March. Its auto businesses could generate $35 billion in revenue by that year, according to analysts including Sharon Shih.(Adds shares in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Apple Inc. (NASDAQ: AAPL) supplier Hon Hai Precision Industry Co., Ltd. - ADR (OTC: HNHPF), aka Foxconn, reported Tuesday strong revenue growth for the quarter ended March. What Happened: Foxconn's first-quarter revenues were at 1.34 trillion new Taiwanese dollars ($47.05 billion), up 44.5% year-over-year, the company said in a statement. However, this represented a 33% decline from the seasonally strong fourth quarter. Revenues for March climbed 9.78% year-over-year to 441.12 billion new Taiwanese dollars. Foxconn's strong first-quarter numbers is an offshoot of strong demand for iPhones, gaming consoles and servers, according to Bloomberg. Apple is a major customer for the contract electronics manufacturer, which assembles about 60-70% of iPhones. Related Link: Apple Supplier Foxconn Is Exploring North American EV Manufacturing Sites Why It's Important: Foxconn's first-quarter top-line growth suggests continuing iPhone momentum for Apple. The tech giant began witnessing a supercycle with the launch of four variants of its 5G-enabled iPhones in late 2020. Citing Asia supply checks, Wedbush analyst Daniel Ives said iPhone builds for the March quarter is in the 56 million to 62 million range. The company is on track to report record annual iPhone shipments of over 250 million units in 2021, ahead of the previous record of 231 million units reported in 2015, he added. The chip shortage, which has pervaded through sectors, could be a pushback. Foxconn hinted in late March that silicon shortages could impact 10% of its shipments and the chip crunch could last at least through the second quarter of 2022. APPL Price Action: Apple shares were edging up 0.48% to $126.51 on Tuesday afternoon. Related Link: How to Buy Foxconn Stock in the U.S. (Photo: Shiwa ID via Unsplash) See more from BenzingaClick here for options trades from BenzingaMicrosoft Digs At Apple's iPad Pro Again, Promotes Surface Pro 7 As 'Still The Better Choice'What You Might See With Apple's New IMac Redesign: Report© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Hon Hai Precision Industry Co. warned that component shortages could persist till 2022 and affect under a tenth of its shipments, amplifying concerns that a global chip crunch could extend well beyond this year.The assembler of most of the world’s iPhones follows fellow electronics giants that have in recent months suggested a global shortage of semiconductors could be more severe than anticipated, disrupting production of everything from cars to phones. Hon Hai made its projection, which didn’t specify the extent of the hit to its revenue, after reporting quarterly profit that disappointed investors. Its shares slid as much as 3.9% Wednesday.Samsung this month became the largest technology giant to voice concerns about chip shortages spreading beyond the automaking industry, the first to get hit because car companies underestimated a post-Covid surge in global orders. Continental AG, Renesas Electronics Corp. and Innolux Corp. have in recent weeks warned of longer-than-expected deficits thanks to unprecedented Covid-era demand for everything from vehicles to game consoles and mobile devices.Chairman Young Liu said that shortages appear to be growing worse and could last into next year. While Hon Hai is Apple Inc.’s most important production partner, he didn’t specify how or whether the iPhone maker would be affected. But he said that, based on what he’d read, the deficit may extend into 2022.“The impact of shortages in the first two months of the quarter have not been too obvious, because our customers are major companies,” Liu said on a conference call. “Still we are seeing some gradual changes and are monitoring the situation cautiously. Our expectations are that there won’t be a big impact, under 10%.”See How a Chip Shortage Snarled Everything From Phones to CarsHon Hai, known as Foxconn Technology Group, said net income for the quarter ended December declined 3.7% to NT$46 billion ($1.6 billion), slightly below the NT$50.2 billion average of analyst estimates.Earnings in the previous three months had been driven mainly by new smartphones from Apple, and as demand for home computing equipment remained elevated. But the Taiwanese assembler is casting around for new growth drivers a year into the pandemic and it’s identified electric vehicles as a key emerging industry, joining a rush of technology firms seeking a foothold in auto manufacturing ahead of Apple’s own smart vehicle efforts.Revenue in the three months ended December rose 15% to NT$2 trillion, reflecting contributions from the iPhone 12 series, whose launch last year had been delayed due to Covid-19, previously disclosed figures showed. Sales of all business lines likely grew in the first quarter, the company said in a presentation earlier this month, when it revealed record monthly sales for February.Read more: Samsung Warns of Severe Chip Crunch While Delaying Key PhoneWhat Bloomberg Intelligence SaysHon Hai’s sales growth in 2021 may still accelerate to about 7% from 0.3% in 2020, in our opinion, despite its shipments still being delayed by component shortages for the next six months. The sales increase will be driven by strong iPhone and Macbook demand and continuing work-from-home and remote-learning trends.-- Charles Shum and Simon Chan, analystsClick here for the researchIn recent months, Foxconn has entered into partnerships with an array of carmakers including Zhejiang Geely Holding Group Co., Byton Ltd. and Fisker Inc. to boost its automotive capabilities. Two light vehicles based on the Foxconn platform will be unveiled in the fourth quarter, while an electric bus may be launched around the same time, Liu said in February.Its MIH Alliance for vehicles counted more than 1,300 partners as of March 29, the company said Tuesday. Over the next two months, it may announce new tie-ups for batteries, while seeking new partners for areas like electronic controls and integrated circuits, Liu said.Read more: IPhone Maker Foxconn to Help Launch Electric Cars This YearAnnual shipments of Hon Hai’s EVs may reach 1.1 million units, or around 10% of global share, by 2025, Morgan Stanley estimated this month. Its auto businesses could generate $35 billion in revenue by that year, according to analysts including Sharon Shih, who lifted their price target for the stock by 29% to NT$168. Shares of Hon Hai have gained more than 80% in the past year, reaching a 40-month high last week.(Updates with share slide in the second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.