The coronavirus (opens in new tab)outbreak's had a bigger effect on Foxconn than expected. Reuters (opens in new tab) today reported that the company warned investors that its first quarter revenues will be lower than originally anticipated because of the virus' continued impact.
China ordered Foxconn to close its factories (opens in new tab) in January because of the coronavirus outbreak. Foxconn originally planned to resume work (opens in new tab) on February 10, but it still hasn't been able to resume normal production because of the outbreak.
Reuters said the problems are twofold. The first is that many Foxconn employees can't get to work because of travel restrictions, which means its output will be lower than anticipated, even though it was technically allowed to re-open its factories.
Those same travel restrictions have also made it more difficult for the company to ship the goods that it can produce. Which means that Foxconn can't get enough people into its factories and can't ship enough products from them either.
Foxconn didn't say how much lower it expects its first quarter revenues to be. But it's not the only company to warn investors of reduced earnings. Nvidia lowered its guidance (opens in new tab) by $100 million last week, and Apple also tempered expectations (opens in new tab) on Monday.