Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Foxconn sees Q2 surge after profit leaps on COVID-19 work-from-home boom

Stock MarketsMay 14, 2021 04:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A sign of Foxconn is seen at a glass door inside its office building in Taipei, Taiwan November 12, 2020. REUTERS/Ann Wang 2/2

TAIPEI (Reuters) -Taiwan's Foxconn on Friday forecast a 15% rise in second-quarter revenue as the work-from-home boom spurred by the COVID-19 pandemic extends, boosting demand for consumer devices such as the iPhones that Foxconn assembles for Apple (NASDAQ:AAPL).

The upbeat forecast by the world's biggest contract electronics manufacturer reinforces strong growth momentum that saw its first-quarter profit rocket with revenue rising by 45%, even as it is forced to sharply reduce iPhone production in India due to surging coronavirus cases there. [nL1N2MY0BX

It also echoes Apple's own positive outlook. In April the tech giant said it expected revenue for the June quarter to grow by "strong double digits".

"Smartphone demand remains strong ... we will see relatively strong growth (on the year) in the second quarter," Chairman Liu Young-way told an online investors conference.

Officially known as Hon Hai Precision Industry Co, Foxconn said January-March net profit surged to T$28.2 billion ($1 billion) from T$2.1 billion a year earlier, when business was badly hit by factory disruptions early in the outbreak of the COVID-19 pandemic.

The result was well above an average forecast of T$24.41 billion compiled from 11 analysts' estimates by Refinitiv, and up 42% up from first-quarter 2019 net profit.

Foxconn said sales from its major revenue contributor - consumer electronics including smartphones and wearable devices - climbed more than 15% in the first quarter from a year earlier, while computing products such as laptops also rose more than 15%.

First-quarter revenue rose 45% from a year earlier to T$1.34 trillion. That was Foxconn's highest ever first-quarter revenue, marking a 28% jump from the same period in 2019.

The company had previously expected first-quarter revenue to be "better than normal" for the season thanks to strong sales of smartphones and telecommuting devices. Foxconn said it was closely monitoring "materials shortages" in the consumer electronics supply chain, amid a crunch in semiconductor supplies that has hit the auto industry, though described the impact as "limited". It assembles iPhones at plants in China and India, the latter now ravaged by the spread of the coronavirus. Foxconn's shares have risen 14% this year. They ended up 1.5% on Friday, compared with a 1% rise for the broader market.

($1 = 27.9500 Taiwan dollars)

Foxconn sees Q2 surge after profit leaps on COVID-19 work-from-home boom
 

Related Articles

Avoid This Recently Downgraded Cannabis Stock
Avoid This Recently Downgraded Cannabis Stock By StockNews - Jun 16, 2021

Canadian cannabis operator Tilray (NASDAQ:TLRY) has benefited significantly from the booming cannabis market. However, the stock has recently been downgraded by CIBC given...

Is Trinity Industries Setting Up for a Big Move?
Is Trinity Industries Setting Up for a Big Move? By StockNews - Jun 16, 2021

Trinity Industries Inc. (NYSE:TRN) has been trading in a sideways range since March. While in the range, the stock has formed a resistance line and a support line. If the stock...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email