Apple supplier Foxconn Q3 profit near flat, beats estimates

Foxconn, the world’s largest contract electronics maker, reported near flat quarterly profit on Thursday, beating market estimates amid firm demand for telecommuting devices as the pandemic-induced work-from-home trend continues.

The Taiwanese company, whose clients include technology majors such as Apple Inc, booked July-September net profit of T$30.8 billion ($1.08 billion), Reuters calculations showed based on nine-month figures.

That compared with the T$28.61 billion average of 13 analyst estimates compiled by Refinitiv.

It did not elaborate on reasons behind the profit figure, which was near flat versus the T$30.7 billion booked in the same period a year prior.

Foxconn, formally Hon Hai Precision Industry Co Ltd, previously forecast weakness in its revenue-driving smartphone business in the quarter, but said work-from-home lifestyles being adopted worldwide would boost growth.

Underscoring weak demand, global smartphone shipments fell 1.3% from a year earlier, showed data from researcher IDC.

Foxconn is likely to get a revenue boost in coming months from a new lineup of Apple iPhones, analysts said. It is likely to assemble all premium models and 70% of other models, said analysts, including those from Taipei-based Fubon Research.

Foxconn’s share price ended trade 0.4% higher ahead of the earnings release, versus a 0.3% fall in the broader market . It has fallen about 10% so far this year.