Himax Stock Shoots Up On Crushing Q1 Earnings, Strong Q2 Guidance

Himax Technologies HIMX reported first-quarter FY21 revenue growth of 67.4% year-on-year to $309 million, beating the consensus of $299.17 million.
Revenue rose 12.1% quarter-on-quarter due to strong segment demand, beating company guidance of 5-10%.
Q1 gross margin expanded 900 basis points to 40.2%, above company guidance of 37% - 38%.
Revenue from large display drivers rose 13.9% Y/Y to $69.9 million, Small and medium-sized display drivers rose 133.3% Y/Y to $204.1 million, Smartphone sales increased 256.4% Y/Y to $80.2 million, Tablet rose over 150% Y/Y to $73 million, Driver IC revenue for automotive rose 44.3% Y/Y to $43.7 million. In comparison, Non-driver businesses declined 2% Y/Y to $35 million.
Net profit was $67.1 million. The adjusted EPS of $0.384 exceeded the company guidance between $0.301 and $0.341 and analyst consensus of $0.35.
Himax held $245.8 million in cash and equivalents and generated $60.3 million in operating cash flow.
Guidance: Himax sees Q2 net revenue Q/Q growth of 15% - 20%, Gross margin of 45.5% - 47.5%, and adjusted EPS of $0.542 - $0.602, above the analyst consensus of $0.3.
CEO Jordan Wu acknowledged a severe supply-demand imbalance despite foundries running at more than 100% capacity, a noticeable increase in demand for semiconductor for advanced processes from the rapid growth of 5G and high-performance computing, and the trend towards an ever more connected digital world being a driver for mature nodes, particularly, demands from display driver IC, power management IC, CMOS image sensor, automotive industry, and various AIoT devices.
Wu admitted that they had managed to secure more capacity for this year than last year and taking measures to work with strategic foundry partners to enlarge the longer-term capacity pool.
Price action: HIMX shares traded higher by 10.8% at $13.60 in the premarket session on the last check Thursday.

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