Infineon Technologies to Report Q1 Results

Infineon Technologies, the German chip maker, is set to release its fiscal first-quarter results on Tuesday. Here are the key details you should know.

Revenue Forecast

• According to FactSet, Infineon is expected to post revenue of 3.82 billion euros ($4.12 billion) for the three-month period ending in December.
• This forecast is lower than the revenue of EUR3.95 billion that Infineon reported for the same quarter the previous year.
• Infineon's core automotive business is projected to contribute EUR2.15 billion in revenue, surpassing the previous year's EUR1.87 billion figure and accounting for the majority of sales.
• Unlike weaker sales in personal electronics, such as computers and smartphones, demand for chips in cars and electric vehicles has remained strong.
• Infineon anticipates an overall revenue of approximately EUR3.8 billion for the quarter.

Earnings Forecast

• Net profit is expected to decrease from EUR728 million to EUR549 million, as predicted by FactSet.
• Infineon's segment result, an important profitability metric, is likely to decline from EUR1.11 billion to EUR826 million.

What to Watch

• Infineon's stock price is currently trading within a range of EUR33.00 and EUR36.00, similar to its level from a year ago.

Guidance

• Infineon will provide revenue and segment result margin guidance for its fiscal second quarter.
• Investors will be interested in commentary regarding industry trends, specifically the demand for chips used in automotive and personal electronics.
• The company will also review or adjust its fiscal 2024 guidance, which is a significant concern for investors considering the less favorable signals from other semiconductor companies.
• Analysts at J.P. Morgan suggest that fiscal 2024 guidance will likely be slightly revised downward.
• UBS's Francois-Xavier Bouvignies shares a similar view.