Infineon raises forecast amid strong demand
The company now expects a profit margin of 18%, up from an earlier view of 17.8%
Stocks impacted: Infineon (IFNNY)
German chipmaker raised its guidance for revenue and margins in the current fiscal year, citing the fact that demand was greatly exceeding supply. The company lifted its revenue forecast for the year to September 30 to a midpoint of 11 billion euros from 10.8 billion and now expects a profit margin of 18%, up from an earlier view of 17.8%. Infineon reported second-quarter revenue of 2.7 billion euros, up 3% from the prior quarter and by 36% from the same period a year earlier. The company forecast third-quarter revenue of 2.6-2.9 billion euros, with an adjusted EBIT margin at around 18% at the mid-point. At the same time, the firm warned of continued bottlenecks in a manufacturing supply chain that’s running at full speed. Infineon’s shares fell 1.7% in early trading before extending losses to nearly -4% in recent trading.
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