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
05-05-24 2312ET