Yazılar

Foxconn to Report Higher Q4 Profit Driven by AI Server Demand

/in /tarafından

Foxconn, the world’s largest contract electronics manufacturer, is expected to announce on Friday a 2.35% rise in its fourth-quarter profit, driven by robust demand for artificial intelligence (AI) servers. Net profit for the period from October to December is anticipated to reach T$54.4 billion ($1.65 billion), according to a consensus estimate of 15 analysts, up from T$53.15 billion in the same period last year.

In January, Foxconn reported a 15.2% increase in fourth-quarter revenue, reaching a record level for that quarter, with much of the growth attributed to AI server sales. The company, officially known as Hon Hai Precision Industry, has forecast stronger-than-average performance for the first quarter, predicting substantial year-over-year growth, though it has refrained from offering specific financial guidance.

However, the company’s outlook remains clouded by the ongoing global trade war, which poses challenges for Foxconn as it operates major manufacturing facilities in China and Mexico—two countries that have faced increased import tariffs from the U.S. under President Donald Trump.

In addition, Apple announced last month that it would collaborate with Foxconn to build a 250,000-square-foot facility in Houston, which will assemble servers designed for data centers that power Apple Intelligence.

Despite these gains, Foxconn’s shares have dropped 8.7% this year, largely due to concerns over trade policies and the effects of U.S. tariffs.

The company’s earnings call will take place at 3 p.m. in Taipei (0700 GMT) on Friday, during which it will provide an update on its outlook for the remainder of the year.

Deliveroo Delays Margin Growth Goal Amid Slow Consumer Recovery

/in /tarafından

Deliveroo has postponed its margin growth target after a slower-than-expected recovery in consumer confidence, causing a drop in shares that erased the gains made over the past year. Despite reporting its first statutory profit and positive cash flow, the meal delivery company revised its forecast for margin expansion.

For the year, Deliveroo posted a profit of £2.9 million ($3.8 million), a turnaround from a loss of £31.8 million in 2023. Its core earnings reached the top end of guidance, amounting to £129.6 million. However, CEO Will Shu admitted that the consumer environment had not recovered as quickly as expected. In 2023, Shu had set a target to achieve a 4% core earnings margin by 2026, with the possibility of further upside. But now, Deliveroo expects margin growth to pick up starting in 2026, with the 4% target set for the medium term.

“The consumer market since our capital markets event hasn’t been the smoothest,” Shu noted, reflecting the ongoing challenges. As a result, shares in Deliveroo fell 9%, wiping out the gains made over the past year. Jefferies analysts called the new timeline a “blemish,” though they pointed out that the consensus forecast had already been lagging behind the original timeline.

Despite the setback in margin growth, Deliveroo saw growth in gross transaction value (GTV), a key performance metric, which picked up in the second half of 2024. Order growth in the UK and Ireland, Deliveroo’s largest market, also accelerated each quarter. For Q1 2025, Shu expressed confidence, stating that trading had been strong, with no significant changes compared to the latter half of 2024.

To continue growing, Deliveroo will focus on value, its tiered membership programs, and other operational efficiencies. The company also announced its exit from Hong Kong, selling some of its assets to Delivery Hero’s foodpanda after nine years of operations in the region. Shu explained that Hong Kong’s market was particularly price-sensitive, which influenced the decision to exit. This departure will leave Deliveroo operating in seven international markets, in addition to its presence in Britain and Ireland.

Infosys Raises Annual Revenue Forecast on US Demand Revival

/in /tarafından

Infosys, India’s second-largest software services exporter, has raised its annual revenue forecast for the third time this financial year, driven by a revival in U.S. demand, particularly from banking and retail clients. The company now expects its annual revenue to rise by 4.5% to 5%, an increase from its previous forecast of 3.75% to 4.5%.

This upbeat outlook mirrors the sentiments of other Indian IT giants, including Tata Consultancy Services (TCS) and HCLTech, which have also reported early signs of a recovery in discretionary spending. Infosys’ CEO, Salil Parekh, noted an improvement in the U.S. retail and consumer product industries, as challenges related to discretionary spending ease.

In the third quarter, Infosys posted a 7.6% revenue growth to 417.64 billion rupees ($4.83 billion), exceeding analyst estimates of 412.78 billion rupees. The growth was mainly driven by an uptick in revenue from North American clients, which constitute 60% of the company’s total revenue. This marks a significant recovery, as North American revenue had declined for five consecutive quarters.

Infosys also reported an 11.4% increase in profit for the quarter, reaching 68.06 billion rupees, surpassing analysts’ expectations. The company highlighted that all eight business segments saw higher growth, with the financial services division growing 6.1%. The company secured large orders worth $2.5 billion, reflecting its focus on significant deals and strategic engagements.

Gaurav Parab, an analyst at NelsonHall, noted the positive results, particularly the company’s focus on large deals and the promising developments in Agentic AI, a technology enabling AI-powered agents and bots.