Infineon Technologies AG Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next
It's been a pretty great week for Infineon Technologies AG (ETR:IFX) shareholders, with its shares surging 13% to €52.11 in the week since its latest annual results. It was not a great result overall. While revenues of €16b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit €1.14 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Infineon Technologies from 21 analysts is for revenues of €20.1b in 2027. If met, it would imply a major 23% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 110% to €2.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of €20.0b and earnings per share (EPS) of €2.45 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Infineon Technologies
The consensus price target fell 5.2% to €81.63, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Infineon Technologies, with the most bullish analyst valuing it at €124 and the most bearish at €50.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Infineon Technologies' past performance and to peers in the same industry. It's clear from the latest estimates that Infineon Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Infineon Technologies to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Infineon Technologies' future valuation.
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. We have forecasts for Infineon Technologies going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Infineon Technologies that you should be aware of.
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