Cmbi Trims Fit Hon Teng's Tp To $3.48 As 1Q25 Results Miss, Mgmt Lowers Guidance

By Sherry Qin

Foxconn Technology Group is scheduled to report first-quarter results on Wednesday. Here's what you need to know:

NET PROFIT FORECAST: The world's largest contract electronics maker is expected to report a 69% jump in quarterly profit to 37.15 billion new Taiwan dollars, equivalent to $1.23 billion, according to the consensus estimate of 15 analysts in a FactSet poll. The sharp rise is partly due to a low base, as Foxconn's bottom line was hurt by a NT$17.3 billion write-down related to its 34% stake in Japanese electronics maker Sharp in the same period last year.

REVENUE FORECAST: The Taiwanese company, formally known as Hon Hai Precision Industry, said first-quarter revenue rose 24% to NT$1.642 trillion, supported by strong AI server demand.

Foxconn's shares have declined 17% so far this year after falling 21% in the first quarter. Fears about the U.S. tariffs on Taiwanese goods ahead of "Liberation Day" and questions about overspending on AI infrastructure weighed on Foxconn's shares.

WHAT TO WATCH:

• Investors will be watching for Foxconn's latest outlook for 2025 after the recent tariff chaos. After its fourth-quarter results, the company forecast AI server revenue to surpass NT$1 trillion in 2025, making up 50% of its total server revenue and grabbing over 40% market share.
• Foxconn, which assembles iPhones for Apple and builds AI servers for U.S. tech giants such as Amazon and Nvidia, is especially vulnerable to the U.S. tariffs. Semiconductors and some electronics products are currently exempt from the U.S. tariffs, but President Trump has threatened to impose sectoral tariffs soon. At the March earnings call, Chairman Young Liu said tariffs are giving "big headaches to CEOs of our customers," while highlighting the unpredictability of the tariff developments this year. Investors should look for his latest comments after Trump unveiled his reciprocal tariffs.

Write to Sherry Qin at sherry.qin@wsj.com

Subject: Subsidiary, Foxconn Industrial Internet Co.,Ltd., to hold 2024 & 2025Q1 performance conference

Date of events:2025/05/09

Contents:

1.Date that the Company disclose its financial or business

  information to the public:2025/05/16

2.Location that the Company disclose its financial or business information to the public: Web conference

3.Financial/Business data to be disclosed: Operating results and financial position for the financial year 2024 & 2025Q1

4.Content of press release, if provided: NA

5.Any other matters that need to be specified:

Investors can directly log in to the website of Shenzhen Roadshow China Technology Co., Ltd.(https://www.roadshowchina.cn/w/meet/raEZQr) from 15:00 to 16:00 p.m. on May 16, 2025 to participate in this briefing online.

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Hon Hai Precision's unit Foxconn Assembly acquired an additional 3.6 million shares of Q-Edge for $36 million, according to a Thursday filing.

The transaction brings Foxconn Assembly's total holdings in Q-Edge to 3.8 million shares, representing a 100% ownership.

The acquisition is part of the company's long-term investment strategy, the filing said.