Foxconn Technology Group Shares Hit Record Intraday High After Posting Highest April Revenue

By Sherry Qin

Foxconn Technology Group's shares rose sharply after the company reported record revenue for April and reiterated that it expects a rise in second-quarter revenue.

Foxconn, formally known as Hon Hai Precision Industry, said Sunday that its April revenue rose 19% from a year earlier to 510.90 billion New Taiwan dollars (US$15.82 billion), which was its highest April revenue ever.

Shares of the world's largest contract electronics maker jumped 6.4% early Monday to a record intraday high of NT$166.

Revenue for its cloud and networking products showed strong on-year growth, thanks to robust AI-server demand, it said. Components and other products also delivered strong growth, which Citi attributed to solid demand for the company's smartphone and EV-related components.

Foxconn's April revenue gained 14% on month, with the computing segment growing the most, driven by Apple's new MacBook Air launch, Citi analysts Carrie Liu and Michael Hung said in a note.

"The second quarter remains a traditional off-peak season, and major products are entering a period of transition between old and new products," Foxconn said.

The electronics maker reiterated that business in the second quarter is expected to grow from the previous quarter and a year earlier. It is set to report its first-quarter earnings and host an earnings call on May 14.

The Citi analysts expect the earnings call to focus on AI-server opportunities, the demand outlook for personal computer and smartphones, as well as progress in electric vehicles, among others.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 05, 2024 23:12 ET (03:12 GMT)

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