By Mauro Orru
Infineon Technologies is scheduled to report results for its fiscal fourth quarter on Wednesday. Here is what you need to know:
REVENUE FORECAST: The German chip maker could post revenue of 4.04 billion euros ($4.32 billion) for the three months to the end of September, according to FactSet. The forecast is lower than revenue of EUR4.14 billion that Infineon reported for last year’s fiscal fourth quarter. Infineon’s core automotive business is forecast to contribute EUR2.11 billion in revenue, according to FactSet, accounting for the lion’s share of sales. The projected development would be in line with comments from Infineon Chief Executive Jochen Hanebeck, who in recent quarters said that demand for chips in cars and electric vehicles remained high as opposed to weaker sales of chips for personal electronics such as computers and smartphones. Infineon had guided for overall revenue of around EUR4 billion in the quarter.
EARNINGS FORECAST: Net profit is expected to come down to EUR674.8 million from EUR735 million, according to FactSet. Infineon’s segment result, a key profitability metric, should slip to EUR1.01 billion from EUR1.06 billion.
WHAT TO WATCH:
— GUIDANCE FOR FISCAL 2024: Infineon will be setting revenue and segment result margin guidance for its new fiscal year, and investors will be on the lookout for Infineon’s forecasts as well as potential commentary on industry trends, particularly on demand for chips with applications in automotive and personal electronics devices. Warburg Research analyst Malte Schaumann expects guidance to be the main focus area, he wrote in a note to clients. Schaumann said Infineon is expected to guide for mid-single digit revenue growth, with strong top-line growth in automotive offset by weakness at the group’s power and sensor systems and connected secure systems divisions. Schaumann expects Infineon to guide for a decline in its segment result margin. Citi analysts are also expecting weak guidance, they wrote in a research note.
— DIVIDEND: Infineon is reporting fiscal 2023 results and its dividend proposal is another area that investors will be looking at. The group had proposed a EUR0.32 per share dividend for fiscal 2022.
Write to Mauro Orru at [email protected]