- Infineon anticipates second-quarter revenue of approximately €3.6 billion, exceeding the estimate of €3.42 billion.
- The forecast for free cash flow remains at around €900 million, with total investments expected to be about €2.5 billion for the year.
- First-quarter revenue reached €3.42 billion, a 7.5% decline compared to the previous year, with an estimate set at €3.21 billion.
- Automotive sector revenue was €1.92 billion, marking an 8% year-over-year decrease, against an estimate of €1.8 billion.
- Revenue from the GIP (Green Industrial Power) segment fell 30% year-on-year to €340 million, lower than the estimated €375.5 million.
- PSS (Power & Sensor Systems) saw a 7.2% increase in revenue to €820 million, surpassing the estimated €752.7 million.
- The CSS (Connect Secure & Sensors) segment reported a 5.5% decline in revenue at €344 million, slightly above the estimate of €335.4 million.
- Total segment profit amounted to €573 million, a 31% decrease year-over-year, yet exceeding the estimate of €472.4 million.
- The segment result margin was 16.7%, compared with 22.4% in the previous year, but higher than the estimated 15%.
- The automotive result margin was 18.9%, down from 27.1% year-over-year, slightly above the estimate of 18.1%.
- GIP result margin decreased to 10% from 26.7% year-on-year, below the estimated 11.6%.
- PSS result margin improved to 18.2% from 12.9% the previous year.
- CSS result margin fell to 8.7% from 10.2% year-over-year, below the estimate of 9.63%.
- The quarter reported a negative free cash flow of €237 million, contrasting with a positive €1.15 billion in the previous quarter.
- For fiscal year 2025, Infineon’s revenue is expected to be flat or slightly up, revising the previous expectation of a slight decline.
- The adjusted gross margin is projected to be about 40%, with the Segment Result Margin anticipated in the mid-to-high-teens percentage range.
A look at Infineon Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Infineon Technologies AG, a company that designs, manufactures, and markets semiconductors for various industries, is positioned for a positive long-term outlook. Based on the Smartkarma Smart Scores, Infineon scores well in growth and momentum, reflecting strong potential for expansion and market performance. With above-average ratings in these key areas, Infineon Technologies is poised to continue its upward trajectory in the semiconductor market.
While Infineon Technologies scores average in value, dividend, and resilience according to the Smartkarma Smart Scores, its high ratings in growth and momentum indicate a promising future. The company’s focus on power semiconductors, microcontrollers, and other cutting-edge products positions it well to capitalize on evolving market trends. Investors may find Infineon Technologies a compelling choice for long-term growth and stability within the semiconductor sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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