By Mauro Orru 
 

Infineon Technologies AG (IFX.XE) shares rose Wednesday as results for the first quarter of its fiscal year and guidance for 2020 were in line with expectations.

Infineon shares traded 6.1% higher at EUR21.37 at 0919 GMT.

The German chip maker said net profit and revenue for the quarter ended Dec. 31 fell, while the group continues to expect year-on-year revenue growth of 5% for 2020, plus or minus 2%, with a segment result margin of about 16%.

The company reported net profit of 210 million euros ($232 million), down from EUR254 million in the first quarter last year, while revenue decreased to EUR1.92 billion from EUR1.97 billion.

Revenue for Infineon's automotive business decreased to EUR829 million from EUR846 million last year amid lower demand.

Frederic Yoboue, analyst at European investment bank Bryan Garnier, said that results and guidance are broadly in line with expectations, adding that the automotive business performed "well below estimates."

Gianmarco Bonacina, analyst at Italian investment bank Equita Sim said that revenue was in line with guidance and consensus expectations, although resilience in energy transmission and traction managed to partly offset weaknesses in industrial applications for wind power and home appliances.

Infineon's segment result margin "at 15.5%, on the other hand, was clearly higher than expected but was impacted by a non-recurring element of EUR36 million linked to the valuation of the inventory net," Mr. Bonacina added, saying the result would have been 13.6% excluding its one-time effect.

Infineon also said the acquisition of Cypress Semiconductor Corp. (CY) is expected to close toward the end of the second quarter or at the beginning of the following quarter.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

February 05, 2020 04:49 ET (09:49 GMT)

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