Himax Technologies (HIMX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $222.4 million, down 7.2% sequentially but above guidance, driven by strong automotive, tablet, and Tcon demand; after-tax profit was $13.0 million, or $0.074 per diluted ADS, exceeding guidance.

• Gross margin was 30.0%, matching guidance but down from 32.0% last quarter due to unfavorable product mix.

• Automotive business remained the largest revenue contributor, representing nearly half of total sales, with automotive TDDI shipments surpassing DDIC for the first time.

• 2023 full-year revenue was $945.4 million, a 21.3% decline from 2022, with profit dropping 78.6% to $50.6 million.

• Guidance for Q4 2024: revenue flat to slightly down sequentially, gross margin flat to slightly up, and EPS between $0.093 and $0.11.

Financial highlights

• Large display driver revenues were $30.7 million, down 21.2% sequentially due to weaker monitor and TV IC sales.

• Small and medium-sized display driver segment revenue was $155.4 million, down 2.2% sequentially but better than expected, led by automotive and tablet.

• Non-driver sales were $36.3 million, down 13.1% sequentially, mainly from Tcon declines.

• Operating expenses rose to $60.8 million in Q3 2024, mainly due to annual bonus compensation.

• Cash and equivalents at quarter-end were $206.5 million, down from $253.8 million last quarter, mainly due to dividend and bonus payments.

Outlook and guidance

• Q4 2024 revenues expected to be flat to slightly down sequentially; gross margin flat to slightly up; profit per diluted ADS estimated at $0.093-$0.11.

• Automotive IC revenue in Q4 expected to resume growth, increasing single-digit sequentially, with full-year 2024 automotive driver IC sales projected to grow high teens year-over-year.

• Large display driver IC sales anticipated to decline double digits sequentially in Q4.

• Non-driver IC revenue, especially Tcon, expected to increase mid-teens sequentially in Q4.