Why Himax (HIMX) Are Shares Trading Higher Today - Himax Techs (NASDAQ:HIMX)

Himax Technologies, Inc HIMX disclosed preliminary financial results for the fourth quarter and FY22 ended December 31.
The Q4 revenues were $262.30 million, down 42% year-on-year, above the consensus of $228.12 million. The Q4 revenue grew by 22.8% Q/Q.
The Q4 non-IFRS gross margin contracted 2,130 bps to 30.5%.
The Q4 non-IFRS EPS per ADS was $0.273, above the consensus of $0.19.
The FY22 revenue declined 22.3% Y/Y to $1.20 billion, beating the consensus of $1.17 billion.
The FY22 non-IFRS gross margin contracted by 790 bps to 40.6%.
The FY22 non-IFRS EPS per ADS was $1.58, above the consensus of $1.31.
"Q4 sales outperformance can be attributed to our ongoing efforts to deplete excess inventory with better progress than expected toward the end of the fourth quarter, especially in the small and medium size TDDI segments," CEO Jordan Wu said.
"However, the inventory offloading process has adversely impacted gross margin as, where necessary, inventory sales were priced at a discount with goods prepared when both foundry and backend prices were higher due to overall tight capacity at the time."
"Looking ahead, we expect inventory levels to normalize within the next 2 to 3 quarters. We will provide additional detailed updates during the upcoming earnings call," Wu added.
Price Action: HIMX shares traded higher by 2.09% at $7.31 on the last check Thursday.

Why Himax Are Shares Trading Higher Today