Apple supplier Foxconn posts 11.8% increase in revenue
Hon Hai Precision Industry Co Ltd, as Foxconn is formally known, reported a robust T$447.54 billion ($13.96 billion) in revenue last month, marking an 11.8% increase from the previous year and the second-highest figure for the period on record.
However, the first quarter witnessed a 9.6% decline in revenue year-on-year, totaling T$1.322 trillion, which did not meet the T$1.401 trillion LSEG SmartEstimate. Despite this, the company maintains that the figures align with their initial projections.
The downturn in revenue for smart consumer electronics, including smartphones, was ascribed to a high comparison base from the previous year, when the company expedited orders following the reopening of a key factory in Zhengzhou, China, after COVID-related shutdowns.
Foxconn, the world’s preeminent contract electronics manufacturer and leading assembler of Apple’s iPhones, has projected an upswing in revenue for the second quarter. This optimistic forecast comes despite a less-than-stellar performance in the previous quarter that fell short of market expectations.
The company’s shares have experienced a remarkable 52% surge this year, outpacing the broader market’s 13% increase. Foxconn attributes this growth to the cyclical nature of the tech industry, where the first quarter typically sees a slowdown following the bustling holiday season.
Despite the second quarter being traditionally slow, with major products undergoing transitions, Foxconn anticipates growth both sequentially and year-over-year. The specifics of this growth remain undisclosed, as the company refrains from providing numerical guidance.
Conversely, Foxconn reported substantial growth in cloud and networking products during the first quarter, driven by strong demand in the cloud segment.
Looking ahead, Foxconn expressed a bullish stance in its fourth-quarter earnings call, anticipating significant revenue growth fueled by the surging demand for artificial intelligence servers.
The company is set to discuss its first-quarter earnings in detail during a call scheduled for May 14.
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