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Himax (HIMX) to Report Q3 Earnings: What's in the Cards?

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Himax Technologies (HIMX - Free Report) is scheduled to report third-quarter 2021 results on Nov 4.

For the third quarter, the company expects net revenues to sequentially increase 13-17%.

Per IFRS, earnings are projected between 63 cents and 69 cents per ADS. Further, the Zacks Consensus Estimate for earnings is pegged at 78 cents per share, which indicates an increase from the reported earnings of 5 cents in the year-ago quarter.

The company surpassed the Zacks Consensus Estimate once in the trailing four quarters and matched the same three times. Its four-quarter earnings surprise is 2.2%, on average.

Himax Technologies, Inc. Price and EPS Surprise

Himax Technologies, Inc. Price and EPS Surprise

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

Key Factors to Note

In the third quarter, Himax is likely to have benefited from strength in the large panel driver IC business.

Increasing work from home and online schooling trends owing to the coronavirus pandemic are expected to have supported the monitor and notebook businesses in the to-be-reported quarter.

Also, the demand for higher-end and larger-sized TVs is anticipated to have driven the TV segment in the quarter under review.

The company has been witnessing a boost in the demand for advanced displays, with customers spending more time indoors. This might have continued to help it gain momentum in high-end TV and gaming monitor markets in the third quarter.

In addition, the company is likely to have increased tablet sales during the third quarter owing to the stay-at-home lifestyle of consumers amid the pandemic.

Further, the rising demand for EVs and autonomous driving vehicles is expected to have driven the automotive driver business in the quarter under discussion.

Yet, uncertainties related to the pandemic are likely to reflect in the upcoming quarterly results.

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.

Further, the company’s negative outlook toward smartphone sales is likely to impact third-quarter results.

Insight Into Upcoming Earnings Announcements

Himax has gained 50.6%, outperforming the Zacks Computer and Technology sector’s 24.7% growth on a year-to-date basis.

Zacks Investment ResearchImage Source: Zacks Investment Research

Investors interested in the sector are eagerly awaiting earnings releases from players like Applied Materials (AMAT - Free Report) , HP Inc. (HPQ - Free Report) and Cisco Systems (CSCO - Free Report) .

Applied Materials is set to release fourth-quarter 2021 results on Nov 11. The Zacks Consensus Estimate for earnings is pegged at $1.94 per share, indicating 55.2% growth from the year-ago reported figure. It currently carries a Zacks Rank #2 (Buy).

HP, a Zacks Rank #2, is scheduled to release fourth-quarter fiscal 2021 results on Nov 23. The Zacks Consensus Estimate for earnings stands at 88 cents per share, which suggests an increase of 41.9% from the prior-year reported figure.

Cisco, also carrying a Zacks Rank #2, is set to report first-quarter fiscal 2022 results on Nov 17. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, implying a 6.6% rise from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.