Foxconn Technology’s (OTCPK:FXCOF) has raised its outlook for the fourth quarter, citing a surge in sales for the holiday peak season. The company also announced its revenue for November 2023, showing a significant year-over-year increase.
The Apple (AAPL) supplier, also known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF), noted that the second half of the year typically represents the peak season for the information and communications technology (ICT) industry. Its revenue performance in the first two months of the fourth quarter exceeded expectations. This has led the company to predict a better fourth quarter outlook than the originally forecasted “significant growth.”
In a previous month, Foxconn reported an 11% increase in third-quarter profit and maintained its forecast for a slight decline in revenue for full year 2023, despite expecting sequential growth for the fourth quarter.
For November 2023, the company’s revenue grew 17.95% year-over-year to NT$650.02B, but experienced a 12.30% decline from the previous month (October).
The revenue decrease in November, compared to October, was across its four major product segments. Foxconn attributed this to customers stocking up ahead of the holiday season in October. Revenue declined for the Components and Other Products, and the Computing Products segments. In the Cloud and Networking Products unit, revenue fell due to conservative pull-ins from clients. Additionally, the Smart Consumer Electronics Products segment saw a slight decline in revenue in November compared to October, as customers had stocked up ahead of the holiday season.
Year-over-year, the Smart Consumer Electronics Products and Components and Other Products segments showed strong growth, while the Computing Products and Cloud and Networking Products slightly declined compared to the prior year.
The company attributed last year’s shipment impact due to the pandemic in Zhengzhou, leading to year-over-year growth in revenue from Smart Consumer Electronics Products in November 2023. Revenue from Components and Other Products segments increased due to increasing allocations in Smart Consumer Electronics Products and rising shipments in auto components. However, revenue from the Computing Products segment declined due to a slowdown in PC market demand. The Cloud and Networking Products unit experienced a fall in revenue, attributed to conservative customer pull-ins.
Cumulative revenue in the first 11 months of 2023 fell 4.89% year-over-year to about NT$5.699T.
For the first 11 months, Foxconn noted that Components and Other Products and Smart Consumer Electronics were stable, while Cloud and Networking Products and Computing Products exhibited a slight decline year-over-year.
Foxconn is set to report its monthly revenue report for December 2023 on Jan. 5, 2024.