By David Sachs

Shares in Infineon Technologies jumped Wednesday after the German chip maker beat expectations in its fourth quarter and gave 2024 guidance seen as positive amid a gloomy market.

At 0924 GMT, shares in Infineon were up 7.1% at EUR32.80.

Infineon's fiscal 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.

The company said it is targeting a slightly lower segment-result margin--a key profitability metric for Infineon--in 2024 of around 24%. But its revenue forecast for fiscal 2024 is around EUR17 billion after finishing its 2023 fiscal year at EUR16.31 billion.

"We believe FY24 revenue guidance of 4% growth [year-over-year] with resilient gross margin suggests a strong performance vs peers and therefore confirms our thesis that Infineon has a strong portfolio to outperform in this downcycle," UBS analysts said in a note.

Infineon also increased its dividend to EUR0.35 per share, up from EUR0.32.

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

(END) Dow Jones Newswires

November 15, 2023 04:53 ET (09:53 GMT)

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