Foxconn beats forecasts on cloud computing demand

161
1
Foxconn beats forecasts on cloud computing demand

Foxconn, a supplier of TAIPEI, reported a 12 per cent jump in second-quarter net profit, beating market estimates, helped by strong demand for its cloud computing products.

Net profit for the quarter rose to $33.29bn from T $29.78bn a year ago, according to the Taiwanese company, the world's largest contract electronics maker.

Eleven analysts were expecting a profit of T $31.02 billion, according to Refinitiv.

The company, like other global manufacturers, has had to deal with a severe shortage of chips that has squeezed smartphone production, and recently a downturn in major markets due to high inflation and the war in Ukraine.

Foxconn shares were 0.9 per cent higher ahead of the earnings release, compared to a 0.7 per cent drop in the broader market. The company's market value has gone up 5.8 per cent this year, and they have gone up 5.8 per cent so far this year.