Earnings Miss: Infineon Technologies AG Missed EPS By 7.2% And Analysts Are Revising Their Forecasts
Last week saw the newest third-quarter earnings release from Infineon Technologies AG (ETR:IFX), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of €4.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.2% to hit €0.32 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Infineon Technologies after the latest results.
Taking into account the latest results, the current consensus from Infineon Technologies' 22 analysts is for revenues of €19.5b in 2027. This would reflect a substantial 25% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 160% to €2.42. Before this earnings report, the analysts had been forecasting revenues of €19.2b and earnings per share (EPS) of €2.37 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Infineon Technologies
There's been no major changes to the consensus price target of €85.09, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. There are some variant perceptions on Infineon Technologies, with the most bullish analyst valuing it at €114 and the most bearish at €50.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Infineon Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Infineon Technologies is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Infineon Technologies' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €85.09, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Infineon Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Infineon Technologies going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Infineon Technologies .
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