Himax Technologies, Inc. Just Missed Earnings - But Analysts Have Updated Their Models

It's been a mediocre week for Himax Technologies, Inc. (NASDAQ:HIMX) shareholders, with the stock dropping 16% to US$7.27 in the week since its latest second-quarter results. It looks like the results were a bit of a negative overall. While revenues of US$215m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.1% to hit US$0.095 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

After the latest results, the consensus from Himax Technologies' four analysts is for revenues of US$835.6m in 2025, which would reflect a small 6.1% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to accumulate 9.5% to US$0.46. Before this earnings report, the analysts had been forecasting revenues of US$865.6m and earnings per share (EPS) of US$0.44 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

Check out our latest analysis for Himax Technologies

The average price target increased 14% to US$9.31, with the analysts signalling that the improved earnings outlook is more important to the company's valuation than its revenue. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Himax Technologies analyst has a price target of US$12.30 per share, while the most pessimistic values it at US$7.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Himax Technologies shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Himax Technologies' past performance and to peers in the same industry. Over the past five years, revenues have declined around 3.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 12% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 17% annually. So while a broad number of companies are forecast to grow, unfortunately Himax Technologies is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Himax Technologies' earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Himax Technologies going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Himax Technologies .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.