Key Points:
- Despite the traditional off-peak season, Foxconn anticipates revenue growth in the second quarter, citing positive outlooks in key product segments.
- April’s sales reached a record high, driven by strong performance in smart consumer electronics and AI server demand.
- The company’s optimistic forecast aligns with Apple’s recent quarterly results, signaling resilience in the tech manufacturing sector.
- Foxconn’s shares have surged nearly 50% this year, reflecting investor confidence in its long-term growth prospects.
Foxconn, Taiwan’s leading contract electronics manufacturer, and Apple’s iPhone assembler anticipates a second-quarter revenue rise despite the traditional off-peak season. The company reported record sales for April, signaling robust performance in key segments.
In a statement, Foxconn noted that while the second quarter typically experiences a slowdown as products transition between old and new models, it expects both quarter-on-quarter and year-on-year growth. The company did not provide specific numerical guidance, adhering to its policy of not disclosing detailed financial forecasts.
April’s revenue reached T$510.9 billion ($15.83 billion), marking the highest figure for the same period in the company’s history and reflecting a notable 19% year-on-year increase. Sales in the smart consumer electronics category, including smartphones, demonstrated significant growth compared to the previous year.
Additionally, Foxconn experienced strong demand for artificial intelligence (AI) servers, contributing to substantial growth in its cloud and networking products segment. These positive trends bode well for the company’s performance in the coming quarters.
The announcement precedes Foxconn’s first-quarter earnings call scheduled for May 14. In the first quarter, the company reported a 9.6% year-on-year decline in revenue to T$1.322 trillion, which fell short of market expectations. However, the company remains optimistic about its outlook, particularly with the anticipated resurgence in revenue growth in the current quarter.
Foxconn’s upbeat forecast aligns with Apple’s recent quarterly results, which exceeded expectations, with CEO Tim Cook expressing confidence in returning revenue growth. Foxconn’s bullish outlook for the year, announced during its fourth-quarter earnings call, underscores expectations for a significant revenue increase driven by heightened demand for AI servers.
Despite the challenges posed by the pandemic and global economic uncertainties, Foxconn’s shares have surged nearly 50% since the beginning of the year, outperforming the broader market’s gain of 13%. The company’s positive momentum indicates investor confidence in its ability to capitalize on emerging opportunities and deliver strong financial performance.
