Foxconn Technology (OTCPK:FXCOF) expects a year-over-year drop in revenue in the first quarter of 2024 coming off a high base, after slower market demand impacted the prior quarter.
The Apple (AAPL) supplier — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — said overall operations in the first quarter of 2024 are gradually entering the traditional off-peak season, and seasonal performance is expected to be similar to that of the past three years.
The company noted that in the first quarter of 2023, as factories resumed normal operation after the pandemic, increasing shipments led to a higher comparison base.
Foxconn, thus, said that outlook for the first quarter is expected to decrease year-over-year.
December 2023 Revenue:
The company’s revenue for December 2023 declined 26.89% year-over-year to NT$460.1B, month-over-month (November) the revenue fell 29.21%. Foxconn said the result was better than expected compared to market consensus and for the company.
For December 2023, month-over-month (November 2023), the company noted that Components and Other Products showed strong growth, while Smart Consumer Electronics delivered significant growth. However, Cloud and Networking Products, as well as Computing Products both declined month-over-month.
For year-over-year, Foxconn said that revenue in Components and Other Products showed significant growth, while monthly revenue of three other Products all declined year-over-year.
Fourth Quarter Revenue:
Revenue in the fourth quarter of 2023 declined 5.4% year-over-year to NT $1.851T, but grew 20% quarter-over-quarter. Foxconn noted that the result was also better than expected compared to market consensus and for the company.
In the Smart Consumer Electronics Products’ segment, revenue in the fourth quarter saw strong growth both on quarter-over-quarter and year-over-year basis.
Smart Consumer Electronics Products segment: As new product pull-in demand and customers stocked up ahead of holiday season, revenue in the fourth quarter of 2023 generated strong growth quarter-over-quarter. Despite the pandemic leading to lower comparison base, revenue was flattish year-over-year in the fourth quarter due to slower market demand, the company noted.
For the Computing Products’ segment: Foxconn said that due to PC market demand slowing, revenue in the fourth quarter slightly declined year-over-year. Meanwhile, as customers stock up ahead of China’s Double 11 shopping festival and Thanksgiving holidays, revenue in the fourth quarter was “flattish” quarter-over-quarter.
Cloud and Networking Products revenue showed significant growth quarter-over-quarter but declined slightly compared to the prior year.
Full-year 2023 revenue:
Revenue for 2023 fell 6.98% year-over-year to NT$ 6.160T. Components and Other Products’ sales were flattish, while Smart Consumer Electronics, Cloud and Networking Products, and Computing Products showed slight declines year-over-year, Foxconn (OTCPK:FXCOF) added.