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Himax (HIMX) to Report Q1 Earnings: What's in the Cards?

·3 min read

Himax Technologies HIMX is scheduled to report first-quarter 2022 results on May 12.

For the first quarter, the company expects net revenues to decrease 5-9% sequentially.

Per Non-IFRS, earnings are projected between 67 cents and 73 cents per ADS. Further, the Zacks Consensus Estimate for earnings is pegged at 70 cents per share, which indicates an increase of 84.21% from the year-ago quarter.

The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters, missing once. The average surprise for the trailing four quarters is 0.54%.

Himax Technologies, Inc. Price and EPS Surprise

Himax Technologies, Inc. Price and EPS Surprise
Himax Technologies, Inc. Price and EPS Surprise

Himax Technologies, Inc. price-eps-surprise | Himax Technologies, Inc. Quote

Q4 At A Glance

In fourth-quarter 2021, Himax reported revenues of $451.9 million, up 63.9% year over year. Profit was reported at 85 cents per share compared with profit of 20 cents, reported in the year-ago quarter.

Fourth-quarter profits were driven by product revenues. Revenues from the large display drivers were $125 million, just shy of being nearly double year over year. Small and medium-sized display drivers’ revenues were $277 million, up more than 50% year over year.

Factors to Note

In the first quarter, Himax’s automotive sales are likely to have benefited from the rising demand for EVs and autonomous driving vehicles. As the global markets opened up after the pandemic-induced quarantine period, demand for vehicles have increased. Also, with increasing awareness about lowering one's carbon footprint to counter global warming, demand for EVs has also increased and is expected to reach 25 million vehicles by 2030, as per The International Energy Agency.

Himax is expected to have benefited from non-driver product sales of timing controllers amid rising demand for high frame rate and high-resolution displays.

The surge in IT demand is likely to have boosted demand for Himax’s notebook display IC sales.

In the first quarter, Himax is likely to have benefited from strength in the large panel driver IC business. Increasing hybrid working culture and online schooling trends, owing to the coronavirus pandemic, are also expected to have supported the monitor and notebook businesses in the to-be-reported quarter.

However, revenues from the TV segment are likely to have decreased as the demand for higher-end and larger-sized TVs is likely to have decreased.

Further, Himax’s first-quarter performance is likely to have been negatively impacted by the falling demand for consumer electronics due to decreased global consumption. The ongoing pandemic, worldwide inflation and geo-political tensions are expected to have negatively impacted consumers’ buying capacity.

In addition, supply-chain challenges are expected to have remained concerns in the to-be-reported quarter. Also, tight foundry capacity might have affected its quarterly performance.

Insight Into Upcoming Earnings Announcements

Himax’s shares have fallen 45.1%, underperforming the Zacks Computer and Technology sector’s 23.9% fall on a year-to-date basis.

Investors interested in the sector are eagerly awaiting earnings releases from players like BWX Technologies BWXT, Analog Devices ADI and Cisco Systems CSCO all of whom carrya Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BWX Technologies is set to release first-quarter 2022 earnings on May 9. It currently carries an Earnings ESP of +2.29%

BWX’s shares have increased 2% in the year-to-date period.

Cisco Systems is set to release third-quarter 2022 earnings on May 18. It currently has an Earnings ESP of +0.84%.

Cisco’s shares have fallen 22% year to date.

Analog Devices is set to release second-quarter 2022 earnings on May 18 and currently has an Earnings ESP of +2.17%.

Analog Devices’ shares have declined 10.7% in the year-to-date period.

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