IFX Infineon Technologies AG

   By Mauro Orru 
 

Shares of Infineon Technologies slumped in Thursday morning trading after the German chip maker confirmed its targets for the year, contrary to expectations of an upgrade following strong demand for its core automotive and industrial end-markets.

At 0720 GMT, Infineon shares traded 9.2% lower at EUR34.92.

"We and many had been anticipating guidance to be increased, particularly on the margin," Citi analysts wrote in a note to clients.

Infineon on Thursday reported revenue of 4.09 billion euros ($4.47 billion) in the three months ended June 30, up 13% on year. Its automotive business contributed EUR2.13 billion to the total.

"On the one hand, in electromobility, renewable energy and related application areas, demand has stayed high. On the other hand, demand for consumer applications, such as PCs and smartphones remains low," said Chief Executive Jochen Hanebeck.

Net profit climbed to EUR831 million from EUR517 million. Infineon's segment result, a key profitability metric, increased to EUR1.07 billion from EUR842 million, generating a 26.1% margin.

Infineon had guided for revenue of around EUR4 billion, and a segment result margin of about 26% in its fiscal third quarter.

For its fiscal fourth quarter, Infineon is targeting revenue of around EUR4 billion, and a segment result margin of around 25%. Citi analysts noted that revenue guidance is shy of their EUR4.2 billion estimate and Vara consensus of EUR4.1 billion, while Infineon's segment result margin forecast is also below Citi's 27.9% projection and Vara consensus of 25.8%.

For fiscal 2023, Infineon continues to expect revenue of EUR16.2 billion, and a segment result margin of around 27%.

"Following management's confidence on the last conference call in May, consistently strong end market data and, most recently, strong results from global peers across the automotive and industrial semiconductor group, the bar had been steadily rising for Infineon into results," Citi analysts said.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

August 03, 2023 03:47 ET (07:47 GMT)

Infineon Technologies (TG:IFX)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Infineon Technologies (TG:IFX)
Historical Stock Chart
Von Mai 2023 bis Mai 2024