By Adria Calatayud
Infineon Technologies is scheduled to report results for its fiscal second quarter on Thursday. Here is what you need to know.
REVENUE FORECAST: The German chip maker is expected to post revenue of 3.61 billion euros ($4.10 billion) for the January-through-March quarter, according to consensus estimates compiled by Vara Research and based on estimates by 19 analysts. For the same quarter of fiscal 2024, Infineon reported revenue of 3.63 billion euros.
EARNINGS FORECAST: Net profit is expected to fall to 318 million euros, according to the consensus. Infineon made a net profit of 394 million euros in the year-earlier period. Infineon's segment result--a key profitability metric--is forecast by the consensus at 572 million euros, down from 707 million euros a year before.
Shares in Infineon fell around 17% over the past year. During the quarter to March, they fell 3.2%.
WHAT TO WATCH
--GUIDANCE: Infineon is likely to stand by existing forecasts for the year to September, with the caveat of tariff uncertainty, analysts at Morgan Stanley said in a research note. The company guided in February for fiscal 2025 revenue to be flat or slightly up, an adjusted gross margin around 40% and a segment result margin in the mid-to-high-teens percentage range. If Infineon updates its currency assumptions, the move could result in a 200 million-euro reduction in its segment result, JPMorgan analysts estimated. A confirmation of guidance despite the currency headwinds will probably be welcomed by investors, but would require new revenue not currently factored into consensus expectations, the JPM analysts said.
--TARIFFS: It seems unlikely that Infineon investors will get any steer on what impact tariffs might have given the lack of clarity around their implementation, Morgan Stanley analysts said. Peers that have reported so far such as STMicroelectronics, Texas Instruments, Renesas Electronics and NXP Semiconductors haven't been able to give guidance on what level of revenue could be at risk, Morgan Stanley analysts said. Resilient electric vehicle sales in China and Europe could provide some buffer, UBS analyst Francois-Xavier Bouvignies said.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
May 07, 2025 09:51 ET (13:51 GMT)
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