Himax reported earnings of 8 cents a share for the first quarter, above analysts' estimates of 7 cents a share for the quarter. Revenue fell 8% year over year to $179 million for the quarter, below analysts' estimates of $182.9 million.
The company expects to report earnings of 4.3 cents to 5.3 cents a share in the second quarter, below analysts' estimates of 7 cents a share. Himax expects second quarter revenue to fall 5% to 9% compared to the first quarter, while analysts expect revenue of $195.01 million for the quarter.
"As we previously cautioned, ongoing softness in China's smartphone and tablet markets, which was worsened by fewer working days due to the timing of Chinese New Year, dampened our first quarter performance and near term outlook," President and CEO Jordan Wu said. "Following the soft overall market in the first quarter of 2015, the semiconductor industry and Himax will likely continue to feel pressure in the second quarter due to continuous weak demand in the China smartphone market."
TheStreet Ratings team rates HIMAX TECHNOLOGIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HIMAX TECHNOLOGIES INC (HIMX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."