For the three months to the end of June, Infineon posted adjusted EPS down 37% year-on-year, to 0.43 euros, on revenues down 9% to 3.7 billion.
Following this publication, UBS has left its Buy recommendation unchanged, with a price target of E44.
Infineon's strong portfolio and second-quarter outperformance suggest a long-term uptrend with significant upside potential," says the analyst firm.
"Operating income for the third fiscal quarter was 2% ahead of expectations. Based on the new guidance for the fourth quarter, we expect minor EPS changes for fiscal 2024 and 2025, which should support the share today' says UBS.
It should be recalled that Infineon has slightly lowered its annual revenue forecast. The German semiconductor manufacturer now anticipates sales of around 15 billion euros (instead of 15.1 billion), but still expects a segment margin of around 20% and an adjusted gross margin 'in the low 40s'.
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Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).