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Foxconn to Report Second-Quarter Results

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Net Profit Forecast

Foxconn Technology Group is expected to report a 22% drop in net profit for the second quarter of this year. Analysts predict a net profit of 25.82 billion new Taiwan dollars, compared to 33.29 billion in the same period last year.

Revenue Forecast

Foxconn announced that its second-quarter revenue fell 14% from the previous year to NT$1.303 trillion. These figures are unaudited.

Key Points to Watch

Margins

The company’s operating profit margin showed improvement, reaching 2.77% in the first quarter, up from 2.25% in the fourth quarter of 2022 and 2.61% in the same period last year. Margin trends are being closely monitored by investors worldwide, given the rising operating costs across industries.

Outlook

July’s revenue declined by 1.2% compared to the same month last year, with sales of cloud and networking products dropping and slower demand in the personal-computer market. However, Foxconn expects a better outlook for the third quarter compared to the second. Investors will be interested in any earnings projections provided by management.

Chip Initiatives

Foxconn recently terminated a chip-making partnership with Indian resources conglomerate Vedanta and is actively seeking new partners. Additionally, the company joined forces with auto maker Stellantis earlier this year to establish a new business selling semiconductors to the automotive industry. Any updates on Foxconn’s chip initiatives will be of particular interest to investors.

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