Infineon Meets Targets After Better-Than-Expected Revenue, Net Profit

By David Sachs

Infineon Technologies met its fiscal 2023 targets and proposed a higher dividend after beating expectations for net profit and revenue in its fourth quarter.

The German chip company said on Wednesday that fourth-quarter net profit reached 753 million euros ($819.2 million) compared with EUR735 million in the fourth quarter of last year. Analysts had expected net profit of EUR674.8 million, according to FactSet.

Revenue was EUR4.15 billion compared with EUR4.14 billion. Analysts polled by FactSet had expected revenue of EUR4.04 billion, while the company had targeted around EUR4 billion.

Infineon's segment result, a key metric for the company, was EUR1.04 billion, compared with EUR1.06 billion a year ago. Its margin dipped to 25.2% from 25.5%.

The chip maker hit its annual targets for revenue and segment result margin for the year, posting sales of EUR16.31 billion and a segment result margin of 27%. Guidance for fiscal 2023 was revenue of EUR16.2 billion and a segment result margin of around 27%.

The company said it is targeting a lower segment result margin in 2024 of around 24%. It is aiming for around EUR17 billion in revenue, Infineon said.

Infineon proposed a fiscal 2023 dividend of EUR0.35 per share, up from EUR0.32.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

November 15, 2023 02:30 ET (07:30 GMT)

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