Stock Track | Himax Technologies Soars on Strong Q3 Results, Promising Growth Outlook

Stock Track11-07

Shares of Himax Technologies Inc. (HIMX) skyrocketed nearly 6.30% on Thursday, November 7th, 2024, after the fabless semiconductor company reported better-than-expected financial results for the third quarter of 2024 and provided an upbeat outlook for the current quarter.

In the third quarter, Himax posted earnings of $0.074 per diluted American Depositary Share (ADS), surpassing analysts' estimates of $0.07. The company's revenue came in at $222.4 million, exceeding the consensus expectation of $220 million and representing a 6.8% year-over-year decrease.

The strong financial performance was driven by robust sales in the automotive and tablet markets, which offset weaker demand in the monitor and TV segments. Additionally, Himax's non-driver business, including timing controllers (Tcon), saw a 13.1% sequential increase in revenue, contributing to the overall positive results.

Looking ahead to the fourth quarter of 2024, Himax provided guidance for earnings in the range of $0.093 to $0.11 per diluted ADS, signaling continued profitability despite the challenging macroeconomic environment. While this guidance fell short of the analyst estimate of $0.16, it was still viewed positively by investors.

Himax's CEO, Jordan Wu, highlighted the company's confidence in its business outlook for several key growth areas, such as automotive, artificial intelligence (AI), wafer-level optics (WLO), and organic light-emitting diode (OLED) displays. These sectors are expected to drive significant growth for the company's business in the future.

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