Foxconn Technology Group, the world’s largest electronics contract manufacturer and the biggest assembler of Apple’s iPhone, reiterated on Sunday it expected a rise in Q2 revenue, and reported record sales for the month of April. The company’s shares hit a record intraday high after reporting its highest April revenue.
Taiwan’s Foxconn said in a statement that this year’s Q2 “remains a traditional off-peak season, and major products are entering a period of transition between old and new products”. Though the statement also stated, “The operations outlook for the second quarter is expected to show both quarter-on-quarter and year-on-year growth”.
There was no further details nor did Foxconn gave any numerical guidance.
Rise in Foxconn’s Q2 revenue
Foxconn, formally called Hon Hai Precision Industry Co Ltd, performance has been good. It said its Q2 revenue reached T$510.9 billion ($15.83 billion). According to the company this has been the highest figure on record for the same period and represented an on-year rise of 19%.
Revenue in its smart consumer electronics products, including smartphones, in April showed “significant growth” year-on-year, it said.
Strong artificial intelligence (AI) server demand also delivered “strong growth” in April on-year for its cloud and networking products segment, the company added.
Foxconn’s sales
The monthly sales data comes ahead of Foxconn’s Q1 earnings call on May 14.
Foxconn has previously reported that for the Q1, revenue slipped to 9.6% year-on-year to T$1.322 trillion, underperforming a T$1.401 trillion LSEG SmartEstimate. This gave more weight to forecasts from analysts who are more consistently accurate.
Traditionally, the Q1 is slower than the previous one. First quarter is when Taiwan’s tech companies race to supply smartphones, tablets and other electronics to major vendors such as Apple for Western markets’ year-end holiday period.
Apple’s good quarterly report
Apple on Thursday surprised investors with a decent beat on quarterly revenue from China, defying a plethora of negative data points on iPhone sales. That discrepancy could stem from differences in the way independent analysts account for the business, or higher average sales prices than anticipated.
Apple’s quarterly results and forecast beat modest expectations on Thursday, and CEO Tim Cook said revenue growth would return in the current quarter.
Foxconn’s outlook
In March, Foxconn adopted a far more bullish outlook for this year, saying on its fourth-quarter earnings call that it expected a significant rise in revenue driven by booming demand for AI servers.
Foxconn’s shares
Foxconn’s shares have surged almost 50% so far this year, compared with a 13% gain for the broader market. Its stock rose by as much as 6.7% on Monday, the most intraday in about two weeks due to the news of Q2 revenue. Foxconn’s shares closed up 1.3% on Friday.
