Why Himax (HIMX) Shares Are Falling Today

Kayode Omotosho /
2023/05/11 12:39 pm EDT
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What Happened:

Shares of semiconductor maker Himax Technologies (NASDAQ:HIMX) fell 8.09% in the morning session after the company reported first-quarter results that exceeded analysts' expectations for revenue, though sales were down in absolute terms falling 41% year on year. The sales decline was attributed to a sudden demand drop in the automotive business. The automotive business has been the biggest revenue driver in recent years and accounts for over 30% of total sales. On a brighter note, earnings per share (EPS) beat estimates, and free cash flow and inventory levels both improved. However gross margin deteriorated coming in at 28%, down from 47% in the same quarter last year. Management noted that "Himax is going through a challenging second quarter in terms of both sales and gross margin but believes this will be a short-term phenomenon with a rebound around the corner starting in the second half." There many puts and takes, positives and negative, this quarter but overall it was a poor performance.

What is the market telling us:

Himax's shares are quite volatile and over the last year have had moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Is now the time to buy Himax? Access our full analysis of the earnings results here, it's free.