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Apple supplier Foxconn's Q2 profit beats estimates

Apple supplier Foxconn's Q2 profit beats estimates

Foxconn's office in Taipei, Jun 23, 2020. (File photo: REUTERS/Ann Wang)

TAIPEI: Taiwan's Foxconn reported a better-than-expected quarterly profit on Thursday (Aug 12) due to strong demand for technology products from clients, such as Apple, as people continued to telecommute amid the COVID-19 pandemic.

The world's largest contract electronics maker reported April to June net profit of NT$29.779 billion (US$1.07 billion), up 30 per cent from a year earlier. That compared to a Refinitiv consensus estimate of NT$25.98 billion drawn from 12 analysts.

Foxconn said the stronger-than-expected figures were driven by its key consumer products, mainly smartphones, as more people work and study from home globally due to the pandemic.

Formally called Hon Hai Precision Industry, Foxconn had in May forecast a 15 per cent rise in second-quarter revenue, buoyed by demand for consumer devices such as the iPhones that Foxconn assembles for Apple.

Its second-quarter revenue rose 20 per cent from a year earlier to NT$1.35 trillion.

In the third quarter, Foxconn expects overall revenue to gain by 3 per cent to 15 per cent and revenue from the consumer electronics division to rise more than 15 per cent from a year earlier.

Foxconn's shares have risen about 16 per cent this year. They ended flat on Thursday, in line with the broader market.

Source: Reuters/dv

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