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Himax (HIMX) to Report Q4 Earnings: What's in the Cards?
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Himax Technologies (HIMX - Free Report) is set to report fourth-quarter 2020 results on Feb 4.
The Zacks Consensus Estimate for revenues is currently at $275.8 million, indicating growth of 57.7% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has been stable at 20 cents per share in the past seven days. Meanwhile, Himax reported earnings of 1 cent per share in the year-ago quarter.
Notably, the company’s earnings came in line with the Zacks Consensus Estimate in all the trailing four quarters.
Let’s see how things are shaping up for this announcement.
Himax’s Solid Preliminary Results
Himax delivered impressive preliminary fourth quarter 2020 results. Revenues of $275.8 million represent an increase of 14.9% sequentially and 57.6% year over year. The company’s guidance was an increase of 10%, sequentially. The company’s fourth-quarter revenues gained from continued momentum across all the main business divisions.
Earnings per ADS on IFRS basis are anticipated to be 19.5 cents, higher than the prior guidance of 15 to 16 cents per ADS.
Further, the company’s gross margin exceeded its guidance, reflecting stringent cost-control efforts. The company’s gross margin is expected to be 31.2% compared with guidance of 29% for the fourth quarter.
Factors to Consider
Healthy demand for high-end monitor and new-generation low-power notebook driven by the coronavirus-induced work-from-home and online-learning trends is anticipated to have triggered the need for Himax’s display driver ICs as well as timing controllers. This is likely to get reflected in the company’s fourth-quarter top-line performance. Strong demand for tablets also remained a key catalyst.
Also, uptick in demand for its smartphone TDDI solutions due to recovery in the smartphone market as well as higher demand for AMOLED display driver ICs and PMIC for 5G smartphones is expected to have contributed to top line in the quarter under review.
Himax expects smartphone TDDI revenue growth to be up in high teens, sequentially, in the fourth quarter.
Strength in Himax’s WiseEye technology across TV, notebook, air conditioner, doorbell, and door locks end-markets are noteworthy. Furthermore, the company’s 8K TV display drivers and timing controller ICs is expected to have witnessed continued strong uptake among prominent OEMs. These factors are expected to aid top line growth in the quarter under review.
A recovering automotive sector is anticipated to have led to increase in demand for Himax’s automotive driver ICs, which is likely to have positively impacted the top line in the fourth quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Himax this time around. 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 stocks which you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time around:
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +0.42% and currently carries a Zacks Rank of 2.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +6.74% and a Zacks Rank of 2.
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Himax (HIMX) to Report Q4 Earnings: What's in the Cards?
Himax Technologies (HIMX - Free Report) is set to report fourth-quarter 2020 results on Feb 4.
The Zacks Consensus Estimate for revenues is currently at $275.8 million, indicating growth of 57.7% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has been stable at 20 cents per share in the past seven days. Meanwhile, Himax reported earnings of 1 cent per share in the year-ago quarter.
Himax Technologies, Inc. Price and EPS Surprise
Himax Technologies, Inc. price-eps-surprise | Himax Technologies, Inc. Quote
Notably, the company’s earnings came in line with the Zacks Consensus Estimate in all the trailing four quarters.
Let’s see how things are shaping up for this announcement.
Himax’s Solid Preliminary Results
Himax delivered impressive preliminary fourth quarter 2020 results. Revenues of $275.8 million represent an increase of 14.9% sequentially and 57.6% year over year. The company’s guidance was an increase of 10%, sequentially. The company’s fourth-quarter revenues gained from continued momentum across all the main business divisions.
Earnings per ADS on IFRS basis are anticipated to be 19.5 cents, higher than the prior guidance of 15 to 16 cents per ADS.
Further, the company’s gross margin exceeded its guidance, reflecting stringent cost-control efforts. The company’s gross margin is expected to be 31.2% compared with guidance of 29% for the fourth quarter.
Factors to Consider
Healthy demand for high-end monitor and new-generation low-power notebook driven by the coronavirus-induced work-from-home and online-learning trends is anticipated to have triggered the need for Himax’s display driver ICs as well as timing controllers. This is likely to get reflected in the company’s fourth-quarter top-line performance. Strong demand for tablets also remained a key catalyst.
Also, uptick in demand for its smartphone TDDI solutions due to recovery in the smartphone market as well as higher demand for AMOLED display driver ICs and PMIC for 5G smartphones is expected to have contributed to top line in the quarter under review.
Himax expects smartphone TDDI revenue growth to be up in high teens, sequentially, in the fourth quarter.
Strength in Himax’s WiseEye technology across TV, notebook, air conditioner, doorbell, and door locks end-markets are noteworthy. Furthermore, the company’s 8K TV display drivers and timing controller ICs is expected to have witnessed continued strong uptake among prominent OEMs. These factors are expected to aid top line growth in the quarter under review.
A recovering automotive sector is anticipated to have led to increase in demand for Himax’s automotive driver ICs, which is likely to have positively impacted the top line in the fourth quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Himax this time around. 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 stocks which you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time around:
Qorvo (QRVO - Free Report) has an Earnings ESP of +0.78% and holds a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +0.42% and currently carries a Zacks Rank of 2.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +6.74% and a Zacks Rank of 2.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>