Himax Technologies (HIMX) Tops Q3 EPS by 4.3c, Revenues Beat; Offers 4Q EPS Guidance Above Consensus

Himax Technologies (NASDAQ: HIMX) reported Q3 EPS of $0.073, $0.04 better than the analyst estimate of $0.03. Revenue for the quarter came in at $239.9 million versus the consensus estimate of $215.22 million.

“Gross margin expansion has always been at the top of our agenda and we will surely work hard toward continuous profitability improvement. The upbeat Q4 gross margin guidance is mainly a reflection of the tight foundry capacity which results in better pricing and more favorable product mix,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

“The foundry industry appears to be going through a structural change in the supply-demand dynamics for the mature process nodes - both 8” and 12”. We believe the current tightness is likely to persist throughout the next few years. We are experiencing major foundry supply shortage in quite a few of our business areas, including TDDI and DDIC for smartphone, tablet and automotive applications as well as CMOS Image Sensor. For next year’s wafer demands, we have secured with our foundry partners a capacity which is already larger than our total shipment for this year. On top of that, we are developing additional capacities for various product areas with an aim to further our available foundry pool for the next few years. Some of these new capacities will start making contributions next year. We will report the progress in due course. Another important factor for continuous gross margin improvement will come from a number of our non-driver products which are either already in volume production and look on track to grow in size, such as timing controller and ultralow power CIS, or will be new additions to our revenue stream, such as the WiseEye total solution and the WE-I ASIC chip. Again, gross margin expansion will continue to be one of our major business goals for next year and beyond,” concluded Mr. Jordan Wu.

GUIDANCE:

Himax Technologies sees Q4 2020 EPS of $0.15-$0.16, versus the consensus of $0.01.

For earnings history and earnings-related data on Himax Technologies (HIMX) click here.

You May Also Be Interested In

• Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
• Asbury Automotive Group (ABG) Announces Retirement of Chief Legal Officer
• Acme United (ACU) Misses Q1 EPS by 20c