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Wall Street fumes at Foxconn

by on14 August 2017

Expenses probably because of new iPhone costs 

The cocaine nose jobs of Wall Street are furious that Apple’s number one chum Foxconn fell short of its estimates by a huge 25 percent.

Foxconn Electronics has announced consolidated revenues for July at $10.62 billion, down 0.02 percent  on last month month, but up 7.53 percent on the year.

Second-quarter net income for Foxconn Technology Group's flagship unit was a whopping 25 percent below the average of analysts' estimates, spurring a decline of as much as 1.3 percent in Taiwan trading Monday.

Combined consolidated revenues for the first seven months of 2017 were up 1.64 percent on last year.

In July, Foxconn's communication product line saw an on-month revenue drop because of the business group's impressive performance in June, while its consumer electronics product line enjoyed an on-month growth in revenues. As for the computing business group, its revenues were flat from a month ago.

Foxconn's revenues are expected to increase gradually beginning August and the growth will last until the end of 2017 with the fourth quarter being the peak of 2017 for Foxconn.

While this might look ok, many analysts noted a widening in operating expenses. It looks like the company ahd to spend more on R&D and ramping-up costs. This appears to be for the new iPhone, which is costing an arm and a leg to make and caused both Apple and Foxconn many headaches.

The outfit’s gross margin widened 79 basis points, the fourth consecutive quarter that metric has climbed, with this improvement offsetting higher operating costs. On a pure numbers basis, gross profit climbed $240.8 million, while operating expenses rose by $98.6 million.

Last modified on 14 August 2017
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