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Infineon Raises FY22 Outlook On Higher Q2 Results; But Stock Down

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German semiconductor company Infineon Technologies AG on Monday raised its fiscal 2022 forecast again after reporting higher second-quarter results on continued strong demand despite global uncertainties. Further, the company projects sequentially higher revenues in the third quarter, but weak segment result margin. Infineon shares were losing around 4 percent in the morning trading in Germany.

Jochen Hanebeck, CEO of Infineon, said, "Infineon continues to perform well within an increasingly challenging environment. ..Global uncertainties, in particular the war in Ukraine and the further course of the coronavirus pandemic, are placing stress on supply chains. At the same time, demand for our products and solutions continues to exceed supply significantly.... We are closely monitoring short- and medium-term market and supply conditions in order to be able to respond in case of need."

For the third quarter, Infineon expects revenue of around 3.4 billion euros. On this basis, segment result margin is expected at around 21 percent.

Automotive segment revenue is forecast to grow by a mid-single-digit percentage. Revenue growth in the Industrial Power Control and Power & Sensor Systems segments is expected to be within the low single-digit percentage range, while Connected Secure Systems revenue is likely to be slightly down quarter on quarter.

Further, for fiscal 2022, the company now expects revenue to be 13.5 billion euros plus or minus 500 million euros, compared to previous estimate of 13.0 billion euros, plus or minus 500 million euros.

At mid-point of guided revenue range, segment result margin is now expected above 22 percent, while previous estimate was about 22 percent.

Revenue in the ATV and CSS segments is predicted to grow at a slightly faster percentage rate than Group revenue overall year on year. The revenue growth rate in the PSS segment is forecast to be similar to that of the Group. IPC segment revenue is expected to grow by around ten percent.

For the second quarter, profit climbed to 469 million euros or 0.35 euro per share from 203 million euros or 0.15 euro per share in the prior year.

Adjusted earnings per share were 0.44 euro, compared to 0.24 euro per share last year.

Segment result climbed 62 percent from last year to 761 million euros. Segment result margin was 23.1 percent, up from 17.4 percent a year ago.

Gross margin improved to 42.9 percent from last year's 36 percent, and adjusted gross margin grew to 45.4 percent from 39.3 percent a year ago.

Revenue for the second quarter was 3.30 billion euros, up 22 percent from 2.70 billion euros in the prior year.

In the quarter, revenue continued to grow in the Automotive, Industrial Power Control, Connected Secure Systems and Power & Sensor Systems segments in double digit percentage rates.

In Germany, Infineon shares were trading at 26.30 euros, down 3.65 percent.

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