Infineon Technologies AG Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

The first-quarter results for Infineon Technologies AG (ETR:IFX) were released last week, making it a good time to revisit its performance. Infineon Technologies missed revenue estimates by 3.1%, coming in at€3.7b, although statutory earnings per share (EPS) of €0.44 beat expectations, coming in 5.2% ahead of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Infineon Technologies

Taking into account the latest results, Infineon Technologies' 22 analysts currently expect revenues in 2024 to be €15.8b, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 20% to €1.82 in the same period. Before this earnings report, the analysts had been forecasting revenues of €16.7b and earnings per share (EPS) of €2.08 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of €44.47, suggesting the downgrades are not expected to have a long-term impact on Infineon Technologies' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Infineon Technologies at €57.20 per share, while the most bearish prices it at €35.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Infineon Technologies is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Infineon Technologies. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Infineon Technologies going out to 2026, and you can see them free on our platform here..

You can also see whether Infineon Technologies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.