TAIPEI, Oct 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker, reported on Monday a 47% jump in third-quarter revenue year-on-year that beat market estimates, fuelled by strong AI-related demand.
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Revenue for the July-September quarter was T$3.03 trillion ($95.4 billion), well above an LSEG SmartEstimate of T$2.83 trillion that gives greater weight to forecasts from analysts who are more consistently accurate.
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Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which include iPhones, posted significant growth, the company said.
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September revenue alone rose 38% year-on-year to T$1.16 trillion, a record for a single month and the first time it has surpassed T$1 trillion on a monthly basis.
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AI-related operations are expected to continue growing in the fourth quarter, the company said.
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Together with the traditional peak season for electronics products in the second half of the year, this should "support overall performance in line with current market expectations," it said
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But it added that "it remains necessary to monitor the impact of a volatile global political and economic environment".
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Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full third-quarter earnings on November 12.
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The company's shares have gained 10% this year, underperforming a 72% rise for the Taiwan market. The stock closed up 1.2% on Monday ahead of the revenue data release. The benchmark index ended the day 2.6% higher.
($1 = 31.7640 Taiwan dollars)
Reporting by Ben Blanchard; Editing by Christopher Cushing and Edwina Gibbs
Source: Reuters