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 GBP27.87 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 GBP2.34 billion of revenue
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Infineon said that its net profit in the three months that concluded on 31st March came in at GBP175.63 million. In the comparable quarter of the previous year, its net profit was capped at a lower GBP154 million.
The chip manufacturer generated GBP2.34 billion of revenue in the recent quarter versus the year-ago figure of GBP1.72 billion. Segment result, on the other hand, jumped from GBP237.05 million to GBP406.62 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 GBP2.51 billion of revenue and close to 18% of adjusted EBIT margin. The German firm expects roughly GBP9.52 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 GBP36.42 billion and has a price to earnings ratio of 109.09.