Infineon Shares Rise After Guidance Upgrade

By Mauro Orru

Shares of Infineon Technologies AG jumped in Wednesday morning trading after the German chip maker raised forecasts for its fiscal second quarter and the entire fiscal year, citing the resilience of its core automotive and industrial businesses.

At 0710 GMT, Infineon shares traded 6.2% higher at EUR35.64.

The group on Tuesday said it now expects more than 4 billion euros ($4.34 billion) in revenue for the three months ending March 31, above a previous forecast of around EUR3.9 billion. Its segment result margin--Infineon's preferred measure of profitability--should reach a high-twenties percentage in the quarter, up from previous guidance of around 25%.

Chief Executive Jochen Hanebeck said in February that Infineon's automotive and industrial businesses were benefiting from energy-transition trends and the expansion of electromobility, while sales of chips for smartphones, computers and data centers were significantly weaker.

For fiscal 2023 as a whole, Infineon said revenue would be meaningfully above a previous projection of roughly EUR15.5 billion, with a corresponding positive impact on its segment result margin, though it didn't elaborate.

The company will set out more details along with its fiscal second-quarter results on May 4.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

March 29, 2023 03:31 ET (07:31 GMT)

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