Acer Stock Rockets Up 34% After Record Profit
Days after we revealed that Acer had delivered a 13% increase in revenues and a profit lift of 20% as well as a 168% lift in gaming product sales their stock has soared 34% in a blistering five-day rally.
The Company that is now seen as one of the leading PC manufacturers in the world said that it is the biggest rise in share value since 1999, it places the Taiwanese Company into first place on MSCI Inc.’s Asian index.
The company reported its best quarterly net income since 2010 last week, driven by surging sales of its gaming products, notebooks and Chromebooks, and beating every analyst estimate.
The company, once a PC powerhouse to rival Dell and Hewlett-Packard, fell out of favour as demand crumbled with the rise of smartphones. Now the Company is storming back.
One of the key initiatives has been to deliver a superior PC product. They are also being selective in the retailers they give access to their products.
In Australia the Company has had a lot of success selling into education departments, large enterprise and key government departments.
Analysts who initially were sceptical about the Company’s ability to turn themselves around are now turning more bullish in the wake of their blockbuster earnings, with Fubon Securities Co. and Yuanta Securities Co. raising their recommendations on the stock.
Yuanta analyst Calvin Wei said targeting niche products, such as desktop computers designed for gaming, is the right move.
Earlier this week fellow Taiwanese PC Company ASUS, parent Company Asustek Computer reported a 23.6% slump in revenues.
The news came as the Company locally tries to grow their share of the PC gaming market.