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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$246.80 mln

$247.76 mln (1 Analyst)

Q3 Gross Margin

34.20%

Q3 Operating Income

$22.70 mln

*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


Reuters Recommended Reads

  • Nov 4 - South Korea's Magnachip Q3 gross margin falls on FX movements

  • Nov 4 - GlobalFoundries Q3 revenue slightly beats, adjusted profit exceeds estimates

  • Nov 4 - Cirrus Logic Q2 revenue beats on smartphone demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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