Taiwan's Himax Q3 profit tops guidance, Q4 revenue to drop 22-26%

Overview

• Taiwan display driver supplier's Q3 revenue rose 8.5% sequentially

• Q3 profit per diluted ADS exceeded company guidance, helped by lower operating expenses

• Company expects Q4 revenue to fall 22%-26% sequentially due to automotive order reductions

Outlook

• Himax sees Q4 2026 revenue down 22% to 26% sequentially

• Company expects Q4 2026 gross margin to be flat to slightly up

• Himax forecasts Q4 2026 profit per diluted ADS at 4.5 to 6.5 cents

Result Drivers

• AUTOMOTIVE DEMAND - Q3 growth driven by strong demand for automotive display ICs, with panel makers accelerating purchases to meet orders from Chinese automakers expanding overseas

• SMARTPHONE SHIPMENTS - Higher shipments to leading smartphone brands and inventory build-up for new premium models supported Q3 growth

• AUTOMOTIVE TCON SHIPMENTS - Robust automotive timing controller shipments and new project ramp-ups contributed to non-driver segment growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Himax Technologies, Inc. is $14.50, about 38.9% above its November 4 closing price of $10.44

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)