Company News

BUZZ-PREVIEW-Infineon: Autos strength, FX headwind key themes

** Analysts expect strong results at German chipmaker Infineon’s automotive/industrial biz in its Q1 report (Jan. 31), citing upbeat reports from peers

** They, however, remind FX might weigh on co’s results

** Infineon provided guidance for 2% sequential sales decline and segment result margin of about 15%

** Cross-read from direct competitors STMicro and Texas Instruments reports -- both citing ongoing strength in automotive and industrial biz, which account for the majority of Infineon’s sales, Baader Helvea says

** Brokerage reminds, however, that due to the recent strength of the EUR vs. the USD, Infineon faces major FX headwinds going into Q2 (USD accounts for about 55% of sales)

** Stifel sees momentum across business lines (autos, power, semis), but says investor focus is expected to centre on growth in autos

** Bankhaus Lampe will watch comments with respect to lead times and inventories

** “We understand that lead times in power semiconductors are coming down (which may be a first warning signal), although the inventory situation is overall still healthy and selling prices are still going up”, brokerage adds