FILE PHOTO: The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company’s building in Taipei, Taiwan March 30, 2018. REUTERS/Tyrone Siu
November 12, 2020
TAIPEI (Reuters) – Foxconn, the world’s largest contract electronics maker, reported near flat quarterly profit on Thursday, beating market estimates amid firm demand for telecommuting devices as the pandemic-induced work-from-home trend continues.
The Taiwanese company, whose clients include technology majors such as Apple Inc, booked July-September net profit of T$30.8 billion ($1.08 billion), Reuters calculations showed based on nine-month figures.
That compared with the T$28.61 billion average of 13 analyst estimates compiled by Refinitiv.
It did not elaborate on reasons behind the profit figure, which was near flat versus the T$30.7 billion booked in the same period a year prior.
Foxconn, formally Hon Hai Precision Industry Co Ltd, previously forecast weakness in its revenue-driving smartphone business in the quarter, but said work-from-home lifestyles being adopted worldwide would boost growth.
Underscoring weak demand, global smartphone shipments fell 1.3% from a year earlier, showed data from researcher IDC.
Foxconn is likely to get a revenue boost in coming months from a new lineup of Apple iPhones, analysts said. It is likely to assemble all premium models and 70% of other models, said analysts, including those from Taipei-based Fubon Research.
Foxconn’s share price ended trade 0.4% higher ahead of the earnings release, versus a 0.3% fall in the broader market. It has fallen about 10% so far this year.
($1 = 28.5080 Taiwan dollars)
(Reporting by Yimou Lee and Ben Blanchard; Editing by Christopher Cushing)
