By Mauro Orru

 

Infineon Technologies AG's shares rose Tuesday after the German chip maker posted results for the third quarter of fiscal 2020 ahead of expectations.

Infineon rose more than 4% in early morning trading. At 0950 GMT, shares traded 2.9% higher at EUR22.28.

The company swung to a net loss of 128 million euros ($150.6 million) for the three months ended June 30 from income of EUR224 million in the same period last year, as the coronavirus pandemic harmed its target markets with weaker demand across many product areas.

However, revenue for the period rose slightly to EUR2.17 billion from EUR2.02 billion. Analysts at U.S. bank Citi pointed out that revenue exceeded its projections of EUR2.09 billion and consensus forecasts of EUR2.11 billion.

Infineon in May said it expected third-quarter revenue in the range of EUR1.9 billion and EUR2.3 billion.

The company's segment result--a closely watched metric comparable to adjusted earnings before interest and taxes--shrank to EUR220 million from EUR317 million, better than Citi's and consensus estimates of EUR126 million.

The quarterly segment result margin--or adjusted EBIT margin--contracted to 10.1% from 15.7%, ahead of Citi's expected 6.1% and consensus projected 6%.

Infineon expects fourth-quarter revenue in the range of EUR2.3 billion and EUR2.6 billion, a segment result margin at about 14%, and slightly raised guidance for fiscal 2020 given signs of recovery in the automotive market.

It now expects revenue around EUR8.5 billion for the year ending Sept. 30 compared with previous expectations of about EUR8.4 billion.

Infineon expects a segment result margin for the group of around 13%, up from previous forecasts of about 12%.

 

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

 

(END) Dow Jones Newswires

August 04, 2020 06:18 ET (10:18 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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