Infineon Technologies: Q4 Results

Infineon Technologies, the renowned German chip maker, is set to announce its fiscal fourth quarter results. Here’s what you need to know:

Revenue Forecast

• Infineon is projected to post revenue of €4.04 billion ($4.32 billion) for the three months ending September, as stated by FactSet.
• Although slightly lower than the €4.14 billion revenue reported in the same quarter last year, the forecast remains promising.
• FactSet’s report suggests that Infineon’s core automotive business will contribute a significant €2.11 billion, forming the majority of its sales.
• This aligns with comments made by Infineon Chief Executive, Jochen Hanebeck, who emphasized the growing demand for chips in cars and electric vehicles over declining sales in personal electronics like computers and smartphones.
• Infineon had initially guided for an overall revenue of around €4 billion for the quarter.

Earnings Forecast

• Net profit is expected to decrease to €674.8 million from €735 million, according to FactSet’s projections.
• The segment result, a vital profitability metric for Infineon, is predicted to slip to €1.01 billion from last year’s €1.06 billion.

What to Watch For

Stay tuned for Infineon Technologies’ fourth quarter results as they provide insight into the company’s performance and its standing in the industry.

GUIDANCE FOR FISCAL 2024

Infineon is gearing up to provide revenue and segment result margin guidance for its upcoming fiscal year. Not only are investors eagerly anticipating Infineon’s forecasts, but they are also keen to glean insights into industry trends, particularly the demand for chips used in automotive and personal electronics devices. Warburg Research analyst Malte Schaumann believes that the guidance will take center stage, stating in a client note that Infineon is expected to steer towards mid-single digit revenue growth. While the automotive sector is projected to experience robust top-line growth, Schaumann predicts weaknesses in both the power and sensor systems division, as well as the connected secure systems division. Furthermore, Schaumann anticipates that Infineon will guide for a decline in its segment result margin. Echoing this sentiment, Citi analysts also anticipate weak guidance, as mentioned in their research note.

DIVIDEND

Investors will also closely examine Infineon’s fiscal 2023 results and their dividend proposal. In fiscal 2022, the group proposed a dividend of EUR0.32 per share.