What’s in Store for Infineon Technologies’ (IFNNY) Q2 Earnings?

Infineon Technologies' (IFNNY) second-quarter fiscal 2023 results are likely to reflect strength in its Connected Secure Systems segment. Read More...

Infineon Technologies IFNNY is slated to report second-quarter fiscal 2023 results on May 4.

For the fiscal second quarter, IFNNY expects revenues to come in above €4 billion.

The Zacks Consensus Estimate for earnings in the fiscal second quarter is projected at 73 cents per share, reflecting 48.9% growth from the year-ago fiscal quarter’s reported figure.

Infineon Technologies’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while matching it once, the average being 6.32%.

Infineon Technologies AG Price and EPS Surprise

Infineon Technologies AG price-eps-surprise | Infineon Technologies AG Quote

Factors to Consider

Solid demand in the industrial IoT and smart buildings space is likely to have been a tailwind for the company’s Connected Secure Systems (CSS) segment. Further, strength in the areas of Bluetooth, payment cards, governmental identification and embedded SIMs might have been a positive.

The company’s Automotive (ATV) segment is also likely to have benefited from growing prospects in ADAS and electromobility. Further, strength in product and application areas, especially microcontrollers, is likely to have been a positive.

Strengthening momentum across renewable energies is expected to have contributed to the performance of Industrial Power Control (IPC) segment during the quarter under review.

However, weak demand environment might have been a concern.

Coming to the Power & Sensor Systems (PSS) segment, sluggishness across the applications, such as those in the consumer area like smartphones, PCs, notebooks, TVs and gaming consoles, might have been a negative during the to-be-reported quarter.

Solid demand for charging stations for electric vehicles and onboard chargers is expected to have been a tailwind for the segment.

However, material shortages and supply disruptions are likely to have hurt the company’s overall performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Infineon Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below.

IFNNY has a Zacks Rank #1 an and Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on this earnings season.

DigitalOcean DOCN has an Earnings ESP of +2.30% and a Zacks Rank #2 at present.

DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.

BILL Holdings, Inc. BILL has an Earnings ESP of +1.89% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.

PayPal PYPL has an Earnings ESP of +2.15% and a Zacks Rank #3 at present.

PYPL is scheduled to report first-quarter 2023 results on May 8. The Zacks Consensus Estimate for PYPL’s earnings is pegged at $1.09 per share, suggesting an increase of 23.9% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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What’s in Store for Infineon Technologies’ (IFNNY) Q2 Earnings?