Brean Capital Reiterates Hold on Himax Technologies, Inc. (ADR) Following Weak Guidance
Brean Capital analyst Mike Burton weighed in with his views on Himax Technologies, Inc. (ADR)(NASDAQ:HIMX), after the Semiconductor company released its second-quarter results last week, posting revenues and non-GAAP EPS of $169.2M and $0.054, below the Street’s consensus estimate of $172.5M and $0.05 but within guidance. Moreover, Himax guided their September quarter down 7% Q/Q, at midpoint, to $157.3M/$0.013, below the Street at $204.8M/$0.07.
Burton wrote, “Himax reported an in-line June quarter and guided below the Street’s consensus Friday morning. While the Company cited an inventory correction in TVs as one of the primary reasons for the guidance miss, HIMX is also seeing decreasing orders and visibility from its mobile customers. We are encouraged by the progress that is occurring in LCOS and WLO, but believe there will be a considerable amount of time before we see meaningful revenues from these opportunities. Similarly, we believe HIMX has made positive progress with its AMOLED product now qualified at Samsung, but we will get more comfortable when the product begins to ramp (perhaps as early as Q4).”
The analyst reiterated a Hold rating on Himax shares, while no price target was provided.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Burton has a total average return of 13.4% and a 50.6% success rate. Burton is ranked #397 out of 3729 analysts.
Out of the 9 analysts polled by TipRanks, 3 rate Himax stock a Buy, 4 rate the stock a Hold and 2 recommend Sell. With a return potential of 15.9%, the stock’s consensus target price stands at $7.80.