Foxconn Third-Quarter Revenue Soars on AI Demand, Beats Market Forecast
Taiwan’s Foxconn, the world’s largest contract electronics maker, reported on Monday a 47% jump in third-quarter revenue year-on-year that beat market estimates, fuelled by strong AI-related demand.
• Revenue for the July-September quarter was T$3.03 trillion ($95.4 billion), well above an LSEG SmartEstimate of T$2.83 trillion that gives greater weight to forecasts from analysts who are more consistently accurate.
Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which include iPhones, posted significant growth, the company said.
• September revenue alone rose 38% year-on-year to T$1.16 trillion, a record for a single month and the first time it has surpassed T$1 trillion on a monthly basis.
• AI-related operations are expected to continue growing in the fourth quarter, the company said.
• Together with the traditional peak season for electronics products in the second half of the year, this should “support overall performance in line with current market expectations,” it said.
But it added that “it remains necessary to monitor the impact of a volatile global political and economic environment”.
• Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full third-quarter earnings on November 12.
• The company’s shares have gained 10% this year, underperforming a 72% rise for the Taiwan market. The stock closed up 1.2% on Monday ahead of the revenue data release. The benchmark index ended the day 2.6% higher.
($1 = 31.7640 Taiwan dollars)
Source: money.usnews