TAIPEI (Reuters) -Taiwan’s Foxconn, the world’s largest contract electronics maker, beat expectations to submit its highest-ever income for the third quarter on sturdy demand for synthetic intelligence (AI) servers.
Income for Apple (NASDAQ:)’s greatest iPhone assembler jumped 20.2% yr on yr to T$1.85 trillion ($57.3 billion).
“The result exceeded the company’s original expectations of significant growth,” Foxconn stated in an announcement on Saturday.
It was additionally forward of a T$1.79 trillion LSEG SmartEstimate, which supplies higher weight to forecasts from analysts who’re extra constantly correct.
Sturdy AI server demand led to strong income development for its cloud and networking merchandise division, stated Foxconn whose prospects embody AI chip agency Nvidia (NASDAQ:).
For good shopper electronics, which incorporates iPhones, there was a powerful quarter-on-quarter development due to new product launches, however its year-on-year efficiency was flat.
The third-quarter is historically when Taiwan’s tech corporations begin racing to provide smartphones, tablets and different electronics to main distributors similar to Apple for Western markets’ year-end vacation interval.
Complete income in September alone reached T$733 billion, up 10.9% yr on yr and the second-highest ever degree for the month.
“Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum,” Foxconn stated of its outlook for the present quarter.
“The fourth quarter is expected to be roughly in line with current market expectations,” it added, with out elaborating.
The corporate doesn’t present numerical forecasts.
Foxconn’s shares have jumped 86% thus far this yr, outperforming by far a 24% rise for the broader Taiwan market. They closed up 3.7% on Friday forward of the income information launch, bucking a 0.4% fall on the benchmark index.
The corporate will report its full third-quarter earnings on Nov. 14. It has scheduled its annual Tech Day on Oct. 8-9, an occasion the place Foxconn usually publicizes new merchandise or partnerships.
($1 = 32.2900 Taiwan {dollars})
