Foxconn shares have risen 7.8% in 2017
Shares of Apple (AAPL) supplier Foxconn have risen almost 8% so far in 2017. The stock closed at $92 on April 5, 2017.
In the quarter ended December 2016, Foxconn’s net income rose 30% YoY (year-over-year) to $2.3 billion, primarily driven by iPhone 7 demand. Analysts had expected Foxconn to post net income of $1.6 billion. Foxconn generates ~50% of its sales from Apple.
As we learned earlier, Apple’s iPhone units and revenue rose 5% YoY in the last reported quarter. According to Citigroup (C) analyst William Yang, Foxconn’s sales and net income could rise over 40% YoY in 3Q17 and 4Q17 following the launch of Apple’s iPhone 8 in September 2017.
Jabil shares have risen 18% in 2017
Shares of Jabil Circuit (JBL) have risen 18% since the start of 2017. The company beat analysts’ estimates by 2% in 4Q16 when it reported revenue of $4.4 billion.
As phone orders tend to be a sign of future demand, Jabil’s rise in revenue indicates that Apple’s iPhone sales may not fall YoY in fiscal 2Q17, which is generally a weak quarter for Apple. Apple accounts for ~24% of Jabil’s revenue.
Apple shares have risen 24% in 2017, compared to the S&P 500’s (SPY) return of 5%.