Foxconn beats forecasts as Q1 profits jump

(Sharecast News) - First-quarter results from Foxconn came in ahead of forecasts on Thursday as higher AI spend across the tech industry boosted profits at the Taiwanese contract electronics maker.

The company, officially known as Hon Hai Technology Group, reported a 19% jump in net profits to NT$49.9bn ($1.6bn), ahead of the NT$48.9 consensus estimate, despite the net profit margin falling to 2.36% from 2.56%. Revenues rose 29% to NT$2.12trn ($67bn).

Looking ahead to the second quarter, Foxconn said the outlook looks bright despite it traditionally being a slow season for the ICT industry.

"Expectations are for maintaining an uptrend, with significant growth quarter-on-quarter and strong growth year-on-year, thanks to strong AI demand," Foxconn said.

The company, which increased capex by 27% to NT$174bn last year, said spending should rise a further 30% this year due to investments into regional manufacturing deployment, automation implementation, and upgrades of core capacity.

"The full-year outlook remains unchanged, maintaining strong growth and providing greater visibility," Foxconn said.