Infineon: 2024 Revenue Up 4%, Stock Surges 9%

On November 15, Infineon, the prominent German semiconductor company, disclosed its financial results for the fourth quarter of the 2023 fiscal year, concluding in September 2023. Bolstered by robust demand for automotive chips, the quarterly revenue exceeded market expectations, propelling Infineon's stock price to surge over 9%.

The financial report indicates that Infineon achieved a revenue of 4.15 billion euros in Q4 FY 2023, a marginal increase from the previous year's 4.14 billion euros. This surpassed both the financial forecast estimate of 4 billion euros and FactSet's expected 4.04 billion euros.

Breaking down the business segments, the Automotive Electronics Division (ATV) significantly contributed 2.16 billion euros, marking a 12% growth compared to the corresponding period last year, serving as Infineon's primary revenue source.

Regarding net profit, Infineon's Q4 FY 2023 net profit rose by 2% to 753 million euros, surpassing FactSet's consensus expectation of 674.8 million euros. The company's self-defined segment result, akin to adjusted profit, decreased from 1.06 billion euros to 1.04 billion euros, with a segment result margin of 25.2%, aligning with the financial forecast expectation of 25%.

Looking forward to the fiscal year 2024, Infineon anticipates revenue to reach 17 billion euros, reflecting a 4% year-on-year growth. The adjusted gross profit margin is projected to be approximately 45%.

Infineon attributes the expected slowdown in revenue growth for FY 2024 to weakened demand from personal computers (PCs) and smartphone customers.

Analysts from UBS highlighted in their report, "Infineon's projection of a 4% increase in revenue for FY 2024, coupled with a resilient gross profit margin, signifies the company's potential to outperform peers. This reinforces our stance that Infineon possesses a robust product portfolio capable of sustaining industry leadership during economic downturns."

Yahoo Finance quotes on November 15 revealed that Infineon's stock price on the Frankfurt Stock Exchange experienced a notable surge of 9.69%, closing at 33.57 euros per share.