iPhone maker Foxconn exceeds expectations. Apple stock edges up.
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Foxconn is known for assembling iPhones and is a major supplier to Apple.
AFP via Getty Images
Foxconn
And
which makes
apple
iPhones posted a decline in profits in the second quarter, but managed to beat expectations.
Foxconn
(Ticker: 2317.Taiwan), formally known as Hon Hai Precision Industry, said profits fell 1% in the three months through June compared to the same period a year earlier. The company said revenue fell 14% and margins narrowed. Stocks continued to rise because results exceeded expectations.
Foxconn
‘s
The results mirror those in
apple
‘s
(AAPL) latest numbers, which showed a decline in iPhone and iPad sales. Foxconn said performance in its consumer electronics division should improve in the third quarter, although it may still fall short of last year’s performance.
Shares of Apple rose 0.5% to $178.70 in premarket trading Monday. Foxconn shares are up 10% this year.
Foxconn’s fortunes are closely linked to Apple as one of the tech giant’s most important suppliers. It also makes
Sony
(SONY) PlayStation.
Traders were disappointed by results announced by Apple earlier this month, which plunged the company’s market capitalization below $3 trillion. Sales fell for the third quarter for the first time since 2016 and revenue fell. This puts great pressure on Apple, which is delivering with the launch of the iPhone 15 next month.
For its part, Foxconn said it is cautious about its own perspective. “In response to uncertainties such as global monetary policy tightening, geopolitical tensions and inflation, the full-year outlook is now expected to decline slightly from the previous flat forecast,” it said in a statement.
Write to Brian Swint at brian.swint@barrons.com
