Infineon Exceeds Earnings Expectations

The company continues to enjoy a boost from its automotive business.

Author:: Edward Hardy
Publish date:: Feb 2, 2017 7:35 AM EST

Infineon Technologies (IFNNY) beat profit expectations in the first quarter after the German chipmaker and supplier to Tesla (TSLA) - Get Reportand Delphi (DLPH) - Get Reportcontinued to enjoy a boost from its automotive business.

The Munich, Germany-based company booked net profit of €161 million ($174 million) on revenue of €1.645 billion in the first quarter, which ended in December. That compares with the market consensus calling for net profit of €157 million on revenue of €1.6 billion

Infineon's shares are at a record high, closing Wednesday at €17.20.

CEO Reinhard Ploss said, "In the first quarter, revenue and earnings were better than expected, driven in particular by strong demand for our components for automotive electronics and MOSFET power transistors."