Net Profit: Foxconn Technology Group’s net profit for the second quarter decreased by 0.9% compared to the previous year, reaching 33.00 billion new Taiwan dollars (US$1.03 billion). This exceeded the estimated net profit of NT$25.82 billion according to analysts surveyed by S&P Global Market Intelligence.
Revenue: The company experienced a 14% drop in second-quarter revenue, amounting to NT$1.305 trillion compared to the same period last year.
Insights:
Guidance Cut
Foxconn has revised down its outlook for both its cloud-and-networking and computing-products businesses, expecting its overall business performance in 2023 to be worse than in the previous year. This adjustment contrasts with the company’s earlier projection that this year’s performance would be on par with last year.
Consumer Electronics
Despite a decline in second-quarter revenue in its consumer-electronics segment compared to the previous year, Foxconn anticipates a better performance in the third quarter. However, it expects the third-quarter results to fall short of last year’s numbers.
Margin
Foxconn’s operating-profit margin deteriorated to 2.37% in the second quarter, marking a decrease from 2.77% in the first quarter and 2.94% from the same period last year.