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

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Himax Technologies (HIMX - Free Report) is set to report first-quarter 2020 results on May 7.

The Zacks Consensus Estimate for revenues currently stands at $183.6 million, indicating growth of 12.4% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings has stayed at 2 cents per share over the past 30 days. Meanwhile, Himax incurred a loss of 1 cent per share in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and matched the same on the remaining occasions, the average positive surprise being 21.7%.
 

Himax Technologies, Inc. Price and EPS Surprise

Himax Technologies, Inc. Price and EPS Surprise

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

 

Let’s see how things are shaping up for this announcement.

Himax’s Solid Preliminary Results

Himax delivered impressive preliminary first-quarter 2020 results. Revenues of $184.6 million increased 5.5% sequentially and 13% year over year. The company’s guidance was an increase between 1% and 10%, sequentially.

Earnings per ADS on IFRS basis are expected to be 1.9 cents, exceeding the prior guidance of -0.5 to 1.8 cents per ADS.

Factors to Consider

Himax’s first-quarter preliminary results reflect benefits from an improved display driver demand for small-medium panel as well as large displays. Notably, the company is a dominant name in TFT LCD display driver and timing controller IC markets.

The company’s healthy top line is also expected to reflect on an expanded footprint into TDDI, OLED, WLO/CIS and LCOS microdisplays.

Moreover, the company’s diversified customer base and a strong partner ecosystem are likely to have boosted its top line. Himax boasts more than 200 customers across Taiwan, China, Japan, Korea, the United States and Europe.

Further, the company’s gross margin exceeded its guidance, reflecting stringent cost-control efforts.

However, the coronavirus outbreak is expected to have affected Himax’s CMOS image sensor sales for multimedia markets. The company anticipated first-quarter non-driver IC business to decrease by a single digit, sequentially.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Himax has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering from the sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Inphi Corporation has an Earnings ESP of +20.04% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and is a #2 Ranked player.

Activision Blizzard has an Earnings ESP of +10.39% and a Zacks Rank of 2.



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