Himax Technologies Inc. (HIMX) saw its stock plummet 6.61% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results and fourth-quarter guidance, which fell short of investor expectations.
The company reported Q3 revenue of $199.2 million, down from $222.4 million a year earlier, and earnings per diluted American depository share (ADS) of $0.006, significantly lower than the $0.074 reported in the same quarter last year. While the revenue outperformed the company's previous guidance of a 12.0% to 17.0% decline, it still represented a sequential decline of 7.3%. The gross margin came in at 30.2%, in line with guidance.
Adding to investor concerns, Himax's outlook for the fourth quarter failed to impress. The company expects Q4 revenues to remain flat or slightly up compared to Q3, with projected earnings per diluted ADS in the range of 2.0 to 4.0 cents. This guidance falls below the consensus estimate of 8 cents per ADS, potentially contributing to the stock's sharp pre-market decline. Despite ongoing challenges, Himax emphasized its expansion into areas beyond display ICs, such as ultralow power AI, CPO, and smart glasses, as future growth drivers. The company also expressed optimism about its automotive business outlook for the next few years, but this wasn't enough to offset the immediate market reaction to the disappointing results and guidance.
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