Infineon Technologies AG (ETR: IFX) reported an increase in its second-quarter net profit and revenue on Tuesday, and raised its guidance for the full financial year. The company attributed its hawkish performance to robust demand for semiconductors that continued to top supply.
Infineon AG shares tanked 1.5% in premarket trading on Tuesday and lost another 4% on market open. The stock is now exchanging hands at £27.87 per share that almost matches the per-share price at which it started the year 2021. If you want to invest in the stock market online, you will need a reliable stockbroker – here is a list of the top few to make selection easier for you.
Infineon reports £2.34 billion of revenue
Infineon said that its net profit in the three months that concluded on 31st March came in at £175.63 million. In the comparable quarter of the previous year, its net profit was capped at a lower £154 million.
The chip manufacturer generated £2.34 billion of revenue in the recent quarter versus the year-ago figure of £1.72 billion. Segment result, on the other hand, jumped from £237.05 million to £406.62 million in Q2. Adjusted EBIT margin stood at 17.4% in the second quarter – an increase from 13.8% in the comparable period of last year.
For the fiscal third quarter, Infineon now forecasts up to £2.51 billion of revenue and close to 18% of adjusted EBIT margin. The German firm expects roughly £9.52 billion (give or take 3%) of revenue for the full year and close to 18% of adjusted EBIT margin.
CEO Reinhard’s remarks on CNBC’s “Squawk Box”
Commenting on the demand for semiconductor chips on CNBC’s “Squawk Box”, CEO Reinhard Ploss said:
“I remember at the beginning of the century, in the mobile phone boom, we had a similar situation. But the current situation where all verticals are booming, I’ve never seen it before. Also, the effect that the automotive industry is casting on the semiconductor industry is new to me.”
In separate news from Europe, British consumer finance company, Provident Financial plc, said it will close its doorstep lending business that operated for 141 years.
Infineon AG performed largely upbeat in the stock market last year with an annual gain of more than 50%. At the time of writing, it is valued at £36.42 billion and has a price to earnings ratio of 109.09.
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