Foxconn reiterated Q2 earnings to grow, posting record April sales

Foxconn reiterated Q2 earnings to grow, posting record April sales

Taiwan’s Foxconn, the world’s largest contract electronics maker and the largest assembler of Apple’s iPhone, reiterated on Sunday that it expects an increase in second-quarter earnings, and reported record sales for April. Foxconn (2317.TW), open a new tab said in a statement that the second quarter of this year “remains the traditional off-peak season, and major products are entering a transition period between old and new products”.

But it added: “The operating outlook for the second quarter is expected to show quarter-on-quarter and year-on-year growth”.

The statement did not elaborate and the company did not provide numerical guidance.
The company, officially called Hon Hai Precision Industry Co Ltd, said April revenue reached T$510.9 billion ($15.83 billion), which it said was the highest figure on record for the same period and represented a year-on-year increase of 19%.

Revenue in its smart consumer electronics products, including smartphones, in April showed “significant growth” year over year, it said.

Strong demand for artificial intelligence (AI) servers also delivered “solid growth” in April year-over-year for its cloud and network products segment, the company added.

The monthly sales data comes ahead of Foxconn’s first-quarter earnings call on May 14.

Foxconn had previously reported that for the first quarter, revenue declined 9.6% year-on-year to T$1.322 trillion, outperforming the T$1.401 trillion LSEG SmartEstimate, which gives greater weight to forecasts from consistently more accurate analysts.

They stocked broadband and phone cables for telecoms giant BT, but became redundant when the company rolled out fibre.

The first quarter is traditionally quieter than previous quarters, the season when Taiwanese technology companies race to supply smartphones, tablets and other electronics to major vendors such as Apple for the Western market’s year-end holiday period.

Apple, opening a new tab quarterly results and forecasts beat modest expectations on Thursday, and CEO Tim Cook said revenue growth will return in the current quarter.

In March, Foxconn adopted a much more bullish outlook for the year, saying on its fourth-quarter earnings call that it expected a significant increase in revenue driven by rapidly growing demand for AI servers.

Foxconn shares have soared nearly 50% so far this year, compared with a 13% gain for the broader market