Foxconn’s profit beats estimates, sees sustained revenue weakness ahead

Foxconn, the world’s largest contract electronics manufacturer, posted a better-than-expected quarterly profit and forecast its smartphones business would see sustained revenue weakness but at a slightly slower pace this quarter.

The Taipei-based company, however, is expected by analysts to boost its revenue recovery in the months ahead, underpinned by the expected launch in autumn of a new lineup of iPhones by Apple Inc , a major client of Foxconn’s.

Foxconn reported a net profit of T$22.9 billion ($778.54 million) for the second quarter ended June. That was up 34% from a year earlier and better than a consensus estimate of T$17.95 billion drawn from 13 analysts polled by Refinitiv.