By Kosaku Narioka
Foxconn Technology Group is scheduled to report second-quarter results on Wednesday. Here's what you need to know:
NET PROFIT FORECAST: Foxconn, formally known as Hon Hai Precision Industry Co., is expected to post a 1.9% rise in net profit to 30.34 billion Taiwan dollars (US$1.01 billion) for the quarter ended June, according to a poll of analysts by S&P Global Market Intelligence. That compared with NT$29.78 billion net profit a year earlier.
REVENUE: Second-quarter revenue rose 11% from a year earlier to NT$1.510 trillion, the company has said, citing unaudited figures.
WHAT TO WATCH:
--MARGIN: First-quarter operating-profit margin was 2.61%, down from 2.79% in the previous quarter but improving from 2.05% a year earlier. Investors are focusing on Foxconn's margin trends as manufacturers worldwide grapple with higher costs of energy and raw materials.
--CHINA RISKS: During the second quarter, Foxconn faced logistics disruptions and other challenges in China as a result of the country's stringent Covid-19 control measures. More recently, China launched military exercises around Taiwan in protest of a visit by U.S. House Speaker Nancy Pelosi. Investors are closely watching the company's strategy in limiting the impact from supply-chain disruption in the region.
--EV: In June, Foxconn started building its first plant to produce electric-car batteries. Investors are paying attention to any updates from the electronics maker's electric-vehicle initiatives.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
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