Himax Technologies (HIMX) Stock: After Big Gains On Earnings, What’s Next?

Himax Technologies, Inc. (ADR) (NASDAQ: HIMX)

Himax Technologies had an incredibly strong day in the market on Friday and continues to climb in after-hours trading, as we speak. The gains were for good reason. The company not only reported strong earnings on Friday, but strong guidance was reported as well. Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from HIMX moving forward. So, let’s get right to it…

HIMX Releases Strong Q2 Earnings

As mentioned above, Himax Technologies released its results for the second quarter on Friday. The results were overwhelmingly positive, leading to gains in the stock. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, HIMX definitely did not disappoint. During the second quarter, analysts expected that the company would generate earnings per share in the amount of $0.10. However, the company actually reported second quarter earnings in the amount of $0.12 per share, beating expectations by $0.02 per share, or 20%!
  • Revenue – HIMX also proved to have an incredibly strong second quarter in terms of revenue. During the quarter, analysts expected that the company would generate revenue in the amount of $198.61 million. However, the company actually generated revenue for the second quarter in the amount of $201.1 million.
  • Guidance – As if strong earnings and revenue wasn’t enough to get investors excited, the company also released guidance for the third quarter. During Q3, Himax Technologies is expected to report earnings in the range between $0.10 and $0.12 per share. This is incredibly strong guidance, given that the current analyst estimate is at $0.10 per share.

In the release, HIMX tied up the overwhelmingly positive quarter with the following statement:

Himax continues to make good progress in two new smart sensor areas which it announced earlier by collaborating with certain heavyweight partners, including leading consumer electronics brands and a leading international smartphone chipset maker. By pairing a DOE integrated WLO laser diode collimator with a near infrared (NIR) CIS, the Company is offering the most effective total solution for 3D sensing and detection in the smallest form factor which can be easily integrated into next generation smartphones, AR/VR devices and consumer electronics. Similarly, the ultra-low-power QVGA CMOS image sensor can also be bundled with the Company’s WLO module to support super low power computer vision to enable new applications across mobile devices, consumer electronics, surveillance, drones, IoT and artificial intelligence. The Company will report the business developments in these new territories in due course. Regarding other CIS products, Himax maintains a leading position in laptop application and will increase shipments for multimedia applications.”

How The Market Reacted To The News

As you can imagine, HIMX had an incredibly strong day in the market on Friday, following the strong earnings. Not to mention, strong guidance surely helped with the boost. By the end of the trading session, the stock climbed to $9.58 per share after a gain of $0.71 per share (8.00%). HIMX continues to gain in after hours.

What We Can Expect Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Himax Technologies. At the end of the day, the company is doing incredibly well with regard to the advancement of its technology. As it continues to innovate, it is likely to take a leadership role in several areas of the electronics industry. All in all, I’m expecting to see gains ahead.

What Do You Think?

Where do you think HIMX is headed moving forward? Join the discussion in the comments below!

[Image Courtesy of Wikipedia]

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