Foxconn's Q3 results: Revenue jumps 11% YoY to $67.7B
What's the story
Foxconn, the world's largest contract electronics manufacturer, has posted a record third-quarter revenue. The growth comes on the back of strong demand for artificial intelligence (AI) products. However, despite the impressive numbers, Foxconn fell short of market expectations and issued a warning about potential impacts from the exchange rate fluctuations.
Financial details
Foxconn's revenue surges 11% YoY
Foxconn, also known as Hon Hai Precision Industry, reported a whopping T$2.057 trillion ($67.71 billion) in revenue for the third quarter of this year. This is an 11% increase from the same period last year. However, it fell short of the T$2.134 trillion estimate by LSEG SmartEstimate, which gives more weight to analysts who are more accurate with their predictions.
Market performance
AI demand drives revenue growth
Despite missing market forecasts, Foxconn said its third-quarter revenue was better than expected. The company's strong performance was mainly driven by robust demand for AI products in its cloud and networking products division. However, the smart consumer electronics segment, which includes iPhones, witnessed a slight revenue decline due to exchange rate fluctuations.
Monthly milestone
Record September revenue and 4th-quarter outlook
Foxconn's revenue for September rose by 14.2% year-on-year to a record T$837.1 billion for the month. The company expects its operations to continue growing sequentially in the fourth quarter as AI server shipments ramp up, and due to the traditional peak season ahead of year-end holidays in major Western markets.
Stock performance
A look at the share performance
Foxconn's shares have jumped 23% this year, outperforming the Taiwan market's 16% rise. The stock closed up 0.44% on Friday ahead of the revenue data release, compared to a 1.45% jump for the benchmark index.