Infineon Shares Jump After Posting Profit Beat, New Guidance

By David Sachs

Shares in Infineon Technologies jumped Wednesday after the German chip maker beat expectations in its fourth quarter and gave 2024 guidance seen as positive amid a gloomy market.

At 0924 GMT, shares in Infineon were up 7.1% at EUR32.80.

Infineon's fiscal fourth-quarter net profit reached 753 million euros ($819.2 million) compared with EUR735 million in the fourth quarter of last year. Analysts had expected net profit of EUR674.8 million, according to FactSet.

The company said it is targeting a slightly lower segment-result margin--a key profitability metric for Infineon--in 2024 of around 24%. But its revenue forecast for fiscal 2024 is around EUR17 billion after finishing its 2023 fiscal year at EUR16.31 billion.

"We believe FY24 revenue guidance of 4% growth [year-over-year] with resilient gross margin suggests a strong performance vs peers and therefore confirms our thesis that Infineon has a strong portfolio to outperform in this downcycle," UBS analysts said in a note.

Infineon also increased its dividend to EUR0.35 per share, up from EUR0.32.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

November 15, 2023 04:53 ET (09:53 GMT)

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