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Foxconn's Q3, September revenue hit records
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Foxconn benefiting from surge in AI demand
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Foxconn to report broader Q3 results on Nov 12
(Recasts, updates throughout)
TAIPEI, Oct 5 (Reuters) - Taiwan's Foxconn, the world's
largest contract electronics maker, reported record
third-quarter revenue on strong demand for artificial
intelligence products, though it missed the market forecast and
offered caution about exchange rates.
Revenue for Nvidia's ( NVDA ) biggest server maker and Apple's ( AAPL )
top iPhone assembler jumped 11% from the same quarter
last year to T$2.057 trillion ($67.71 billion), Foxconn said in
a statement on Sunday.
While that was below the T$2.134 trillion LSEG
SmartEstimate, which gives greater weight to forecasts from
analysts who are more consistently accurate, Foxconn said the
result was better than expected.
On a U.S. dollar basis, Foxconn said third quarter
revenue rose 16.1% on year. The Taiwan dollar has
strengthened some 8% so far this year against the greenback.
Strong AI demand led to robust revenue growth for its cloud
and networking products division. Smart consumer electronics,
which includes iPhones, posted a slight revenue decline,
affected by exchange rates, the company said.
September revenue rose 14.2% on year to T$837.1 billion, a
record for that month.
Operations are expected to "maintain sequential quarterly
growth as AI server shipments continue to ramp up in the fourth
quarter" and due to the traditional peak season ahead of
year-end holidays in major Western markets, the company said.
"However, the impact of the global political and economic
situation and exchange rate fluctuations will need continued
close monitoring," it added, without elaborating.
Foxconn, formally called Hon Hai Precision Industry ( HNHPF ), does
not provide numerical forecasts. It will report third quarter
earnings on November 12.
Foxconn's shares have risen 23% this year, outperforming the
16% rise for the Taiwan market. The stock closed up
0.44% on Friday ahead of the revenue data release, compared with
a 1.45% gain for the benchmark index.
($1 = 30.3800 Taiwan dollars)