Himax Tech (HIMX) Exceeds Guidance; Stock Spikes

Semiconductor

Himax Technologies (HIMX) stock is surging by more than 6% to $7.95 after the company preannounced this morning preliminary unaudited 2Q16 EPS and revenues above consensus and prior guidance.

The semiconductor firm said that for the three months ended June 30th, 2016 it sees earnings of $0.12 per share, above prior guidance of $0.09 – $0.11, on revenues of $201.1 million. Analysts were expecting EPS of $0.10 on revenues of $199.99 million. The Taiwan-City-based company attributed the revenue increase in the quarter to strong sales in its small and medium-sized driver business. It noted that smartphone driver ICs experienced phenomenal growth due to Chinese end brand customers gaining share from new model launches.

Gross margin was 26.1% versus guidance of around 26%. GAAP EPS per diluted ADS was 11.5 cents, exceeding the company’s guided range of 8.5 to 10.5 cents. GAAP diluted earnings per ADS increased 51.3% sequentially and increased 125.5% from the same period last year.

The company said it remains positive in the outlook of the second half of fiscal 2016.

Valuation Metrics

Himax Technologies Inc. ADR shares currently have an average 3-month trading volume of 3.39 million shares. The name trades with a trailing-12 P/E of 52.31, a forward P/E of 15.58 and a P/E to growth ratio of 0.87. The median Street price target on the name is $10.90 with a high target of $13.00. Currently ticker boasts 7 ‘Buy’ endorsements, compared to 3 ‘Holds’ and no ‘Sell’.

Profitability-wise, HIMX has a t-12 profit and operating margin of 3.71% and 4.36%, respectively. The $1.29 billion market cap company reported $167.96 million in cash vs. $180.00 million in debt in its most recent quarter.

HIMX currently prints a one year loss of about 8%, and a year-to-date loss of around 9%.

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