Foxconn expects rebound in Q2 revenue after last quarter's dip

Foxconn Q2 estimates: Foxconn, the world's largest contract electronics manufacturer and a key assembler for Apple's iPhone, anticipates a rebound in revenue for the second quarter following a period of underperformance in the previous quarter, according to a statement released on Friday.

Typically, the first quarter experiences a lull compared to the preceding quarter, which sees Taiwanese tech firms ramping up production to meet demand for smartphones, tablets, and other electronics ahead of the Western markets' year-end holiday season.

In its statement, Foxconn noted that the second quarter of this year remains a traditional off-peak season, marked by the transition between old and new products. However, it expects growth both quarter-on-quarter and year-on-year, although specific numerical guidance was not provided as per the company's practice.

The company reported that revenue for last month reached T$447.54 billion ($13.96 billion), marking the second-highest figure on record for the same period and representing an 11.8 per cent year-on-year increase. Conversely, first-quarter revenue saw a 9.6 per cent year-on-year decline to T$1.322 trillion, falling short of the T$1.401 trillion LSEG SmartEstimate.

Foxconn attributed the decline in first-quarter revenue for its smart consumer electronics products, including smartphones, to a high base from the previous year when production was ramped up to fulfil orders after the reopening of a key factory in China's Zhengzhou following COVID-19-related disruptions.

However, the company noted significant year-on-year growth in cloud and networking products during the first quarter, driven by strong customer demand in the cloud segment.

Last month, Foxconn expressed optimism for the year ahead, foreseeing a substantial increase in revenue driven by growing demand for artificial intelligence servers.

The company's shares have surged by 52 per cent year-to-date, outpacing the broader market's 13 per cent increase.

Foxconn is scheduled to hold its first-quarter earnings call on May 14th.

(With Reuters inputs)