Himax Technologies stock slides despite preliminary 3Q results that are better-than-expected
Himax Technologies Inc (NASDAQ:HIMX) shares retreated on Friday even after reporting revenue, earnings per share and gross margin that were above guidance for the manufacturer of display drivers and other semiconductor products.
Himax said revenues for the third quarter seen coming in at $188.4 million, an increase of 3.9% versus guidance of around flat from the last quarter of the year. Gross margin was 23.4%, compared with guidance of around 22.5% and earnings per diluted ADS was US$0.05, compared to the company’s guidance of a loss of around $US$0.01.
The revenue increase in the quarter was attributed to greater-than-expected production output of the new foundries for large display driver ICs and TDDI chips which the Company introduced to address the industry’s foundry capacity shortage issue, Himax said.
A more favorable product mix and stronger-than-expected engineering fees from projects with both existing and new customers enhanced the company’s gross margin, it added. The results for the company are due out in November.
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Shares of the company were down 6.5% at $5.99.
A research note by Baird Eauity Research said they reiterated the company’s rating of Outperform with a price target of $10.
The target reflects Himax’s prospects in 3D sensing, driven by its reference design with Qualcomm, said a research note by senior research analyst Tristan Gerra and research associated Maggie Sims.
The risks for the company are excess supply in the display panel industry, continued demand weakness in China where Himax has significant exposure, emerging competition from China-based IC suppliers, and timing of new revenue drivers and associated design wins.
Himax Technologies is a fabless semiconductor solution provider dedicated to display imaging processing technologies. The company is based in Tainan, Taiwan.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/206507/himax-technologies-stock-slides-despite-preliminary-3q-results-that-are-better-than-expected-206507.html
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