Himax (HIMX) Q2 Results, Q3 Guidance Were Solid, but Google Glass Remains 2015 Event - Chardan Capital
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Chardan Capital affirms Himax Technologies (Nasdaq: HIMX) at Buy with a target price of $5 following Q2 reuslts issued earlier Thursday.
Analyst Jay Srivatsa noted Q2 revs of $196.4 million and adjusted EPS of $0.14 fell in-line with consensus views.
On guidance, Srivatsa said, In our preview note yesterday, we projected HIMX revenue guidance of ~5% could be shy of consensus. We were simply wrong. The company guided for revenues to be up 10-15% sequentially from $196 million in Q2:14 and expects gross margins to grow sequentially with non-GAAP EPS expected to be $0.10 to $0.11 in Q3:14. Street consensus was revenues of $210 million and non-GAAP EPS of $0.10. Main reason for the stronger guidance was rebound in orders from Samsung as well as return in demand for large panel display driver ICs driven by pickup in 4K TV sales.
Google glass will be a 2015 event. Srivatsa said, Over the past two quarters, HIMX has not extended its LCoS panel capacity beyond 300K per month but revealed that they have signed an agreement with Lenovo to provide LCoS Microdisplays for various wearable products from Lenovo. Despite that, we believe LCoS revenues in 2014 is unlikely to be significant and believe that HIMX may not get the “go ahead” from Google to drive LCoS panel capacity to higher levels of production in 2014.
For an analyst ratings summary and ratings history on Himax Technologies click here. For more ratings news on Himax Technologies click here.
Himax Technologies closed at $6.56 yesterday.
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