Taiwan's Foxconn, the globe's largest provider of contract electronics manufacturing and primary assembler of Apple's iPhone, reaffirmed on Sunday (May 5) its anticipation of second-quarter revenue growth. The corporation disclosed record-breaking sales for April.
Stating in a release, Foxconn highlighted that the ongoing second quarter is a typical off-peak phase, with major products transitioning between older and newer models. Nonetheless, it expressed expectations for growth both on a quarterly and yearly basis.
The declaration lacked further detail, consistent with the company's policy of not providing specific numerical forecasts.
Formally known as Hon Hai Precision Industry Co Ltd, the company announced April revenues of NT$510.9 billion (US$15.83 billion), marking a historic high for the same period and a 19 percent year-over-year increase.
In April, revenue surged significantly year-on-year in the smart consumer electronics division, encompassing smartphones, as stated by Foxconn.
Furthermore, the company noted robust growth in demand for artificial intelligence (AI) servers, contributing to strong year-on-year growth for its cloud and networking products segment in April.
These monthly sales insights precede Foxconn's upcoming first-quarter earnings call scheduled for May 14.
Foxconn previously reported a 9.6 percent year-on-year decline in first-quarter revenue to NT$1.322 trillion. This underperformed against the NT$1.401 trillion LSEG SmartEstimate, which gives greater weight to forecasts from consistently accurate analysts.
Traditionally, the first quarter is quieter compared to the preceding one, which sees Taiwan's tech firms racing to supply smartphones, tablets, and other electronics for the Western markets' year-end holiday season.
Apple's quarterly results and forecast surpassed modest expectations on Thursday. CEO Tim Cook indicated anticipation of revenue growth returning in the current quarter.
In March, Foxconn adopted a significantly more optimistic outlook for the year, anticipating substantial revenue growth driven by the surging demand for AI servers during its fourth-quarter earnings call.
Foxconn's shares have surged nearly 50 percent year-to-date, outperforming the broader market's 13 percent gain. They closed with a 1.3 percent increase on Friday.
