Taiwanese contract producer Hon Hai Precision Business Co. Ltd. HNHPF, a provider to tech firms corresponding to Apple, Inc. AAPL reported report June quarter income and earnings that exceeded estimates, due to robust synthetic intelligence server income. The corporate, which is popularly known as Foxconn, additionally issued an upbeat ahead commentary.
Key Q2 Metrics: The Taipei, Taiwan-based firm reported June quarter earnings per share of NT $2.53 ($0.08), up from NT $2.38 per share a 12 months in the past. Income climbed 19% year-over-year to NT $1.55 trillion, marking a report excessive for the June quarter. Gross revenue climbed 19% and working revenue was up a steeper 44%, whereas the online revenue rose a extra modest 6%. The corporate famous that gross revenue and working revenue had been additionally marked June quarter data.
Sturdy buyer demand drove AI server income by 60% sequentially within the second quarter, and this accounted for greater than 40% of general server income for the interval, the corporate stated.
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The Outlook: Anticipating the historically robust third quarter, the corporate has projected important year-over-year and sequential development.
Foxconn Vice President and Spokesperson James Wu stated, “Operations will progressively ramp up getting into the normal peak season.”
The corporate stated it expects robust sequential development for the good shopper electronics section, and important sequential and year-over-year development for the cloud and networking merchandise, due to ongoing income momentum in AI servers. Alternatively, computing merchandise will possible see a slight sequential decline decline as a result of a excessive base interval, however nonetheless see important year-on-year development.
The 2024 outlook for important development remained unchanged, due to robust demand for AI servers. There may be higher visibility into the full-year efficiency, the corporate stated.
Wu stated robust demand for AI servers is predicted to proceed. “We keep our view that AI servers will contribute to 40% of general server income this 12 months, he stated. “AI servers ought to quickly change into Foxconn’s subsequent trillion-dollar income product,” he added.
He additionally stated the event schedule of Nvidia Corp.’s NVDA GB200 rack is on observe. “Foxconn will certainly be the primary provider to ship and shipments ought to start within the fourth quarter. If the schedule stays unchanged, the efficiency of the complete AI server section could also be higher than initially estimated,” he added.
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