Foxconn Reports Strong Q3 Profit Growth

TAIPEI (Reuters) – Taiwan's Foxconn (SS:601138), the world's largest contract electronics maker, is expected to report on Thursday that third-quarter profit rose 7% year-on-year due to robust demand for artificial intelligence servers.

Last month, the company announced that third-quarter revenue jumped 20% year-on-year, exceeding expectations and achieving its highest-ever revenue for that quarter, driven by strong sales of AI servers.

According to an LSEG consensus estimate of 14 analysts, net profit for July-September for Apple (NASDAQ:AAPL)'s top iPhone assembler is likely estimated at T$46.3 billion ($1.43 billion). This represents a 7.4% increase compared to the same period last year, marking the fifth consecutive quarter of profit growth.

Foxconn also announced last month that it is constructing the world's largest manufacturing facility in Mexico for bundling Nvidia (NASDAQ:NVDA)'s GB200 superchips, a key component of the U.S. firm's next-generation Blackwell family computing platform.

In terms of sales potential, Foxconn indicated that its October sales reached a record high for the month, and the company, formally known as Hon Hai Precision Industry (TW:2317), expects fourth-quarter revenue to grow year-on-year without providing specific numerical guidance.

Foxconn holds its earnings call at 3:00 p.m. in Taipei (0700GMT) on Thursday, where it will also update its outlook for the remainder of the year.

Notably, Foxconn's shares have surged more than 100% in 2024, significantly outperforming the broader market's 28% gain, largely due to its optimistic outlook on AI.

($1 = 32.4140 Taiwan dollars)