Shares of Quanta down despite positive forecast for third quarter: report
The China Post news staff
June 21, 2014, 12:18 am TWN
Shares of Quanta Computer Inc. (廣達電腦) closed down 0.6 percent on Friday although the world's largest laptop manufacturer of its own designs gave an optimistic shipment forecast for the third quarter.
Many investors also hold high hopes that Quanta will benefit from its efforts to diversify its product portfolio by entering the wearable devices field, the Central News Agency (CNA) reported.
Quanta Said to Produce iWatch
There has been speculation that Quanta has secured orders from Apple Inc. to produce a rumored iWatch, which could strengthen the contract manufacturer's bottom line, they added.
As of yesterday, shares of Quanta shed 0.6 percent to NT$83.5 with 7.88 million shares changing hands. The weighted index on the Taiwan Stock Exchange ended down 43.02 points, or 0.46 percent, at the day's low of 9,273.79.
In an annual general meeting held recently, Quanta Vice Chairman C.C. Leung (梁震次) told shareholders that the company's notebook computer shipments for the third quarter are expected to rise more than 10 percent from the second quarter as the global PC business has been recovering.
“It is reasonable for Quanta to give such an upbeat assessment as the third quarter is a traditional peak season for the PC industry,” Hua Nan Securities analyst Kevin Su said. “More important, it seems that the world's PC market is improving and going stronger than ever.”
Su said market sentiment toward PC shipments has improved, particularly after chip giant Intel Corp. raised its sales guidance for the second quarter last week on stronger-than-expected demand for personal computers used by businesses.
In the first five months of the year, Quanta posted NT$358.54 billion in consolidated sales, up 12.11 percent from a year earlier.