Apple Supplier Foxconn Reports Q2 Earnings Beat

Hon Hai Precision Industry Co Ltd  HNHPF, better known as Foxconn, posted a net profit of $778.54 million for the second quarter ended June — beating analyst estimates, Reuters reported Wednesday.

Work From Home Led To Profits: The Taiwanese tech manufacturer reported a net profit that exceeded the $609.6 million consensus estimate of 13 analysts polled by Refinitiv. 

The figure was higher by 34% compared with the net profit record in the same period last year, Reuters noted. 

The Apple Inc’s AAPL-supplier had reportedly warned of poor Q2 smartphone sales in May, due to the impact of the COVID-19 pandemic, but had also said that the crisis-induced work-from-home trend would afford it opportunities for growth. 

Next iPhone May Offer A Profit Boost: Analysts expect iPhone 12, the new series of Apple smartphones expected to launch later this fall, will boost the revenues of the world’s largest electronics manufacturer for months, Reuters noted. 

Foxconn is expected to produce 70% of the new iPhones, according to KGI Securities, a Taipei-based brokerage.

Price Action: Foxconn OTC shares closed almost 0.5% lower at $5.54 on Tuesday.

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