Foxconn gave a cautious outlook for the current quarter after reporting results that beat expectations, citing slowing smartphone demand following a boom fueled by the pandemic.
The company forecast steady revenue growth in its consumer electronics business, including smartphones, for the quarter ended in September, signaling that demand for some devices was slowing after “significant growth” in the second quarter, when the business accounted for half of your overall income.
“Overall, we are a little more cautious about the third quarter, but compared to the same period last year, we can still see growth,” company president Liu Young-way said on a post-earnings conference call.
Both Foxconn’s net income and revenue for the April-June quarter were up 12%, and Liu said the numbers show the company’s “resilience” amid supply chain problems.
Foxconn said it expects revenue from cloud and network products to be strong in the third quarter.
The company reaffirmed its position since last month that overall revenue this year will grow, rather than a previous forecast to remain flat.
The company did not provide a numerical perspective.
Foxconn shares closed up 0.9% ahead of the earnings release. The stock is up 5.8% so far this year, giving the company a market cap of $50.3 billion.
Source: CNN Brasil
