Reading between the lines—the revenue and net income lines—many noted a widening in operating expenses. On a pure numbers basis, gross profit climbed NT$7.3 billion ($240.8 million), while operating expenses rose NT$3.3 billion. Investors currently price Hon Hai at 13 times estimated earnings for the year, lagging the 13.4-times ratio for trailing 12-month earnings and below the 15.8 for the benchmark Taiex index. Unfortunately, FIH and Hon Hai have been caught short on Snapdeal, resulting in an unavoidable hit to earnings in the second quarter. Not even Tim Cook knows how many new iPhones Apple will sell this year, but be sure Hon Hai is poised to capitalize on the launch.

Source: Mint August 14, 2017 06:00 UTC