Semiconductor maker Himax Technologies (NASDAQ:HIMX) will be reporting earnings tomorrow morning. Here’s what to look for.

Himax beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $239.6 million, up 2% year on year. It was an exceptional quarter for the company, with a significant improvement in its gross margin.

Is Himax a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Himax’s revenue to decline 7.8% year on year to $220 million, a reversal from the 11.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Himax has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Himax’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 46.4%, beating analysts’ expectations by 2.5%, and Monolithic Power Systems reported revenues up 30.6%, topping estimates by 3.3%. Impinj traded down 13.1% following the results while Monolithic Power Systems was also down 17.4%.

Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 4.4% on average over the last month. Himax is up 1.3% during the same time and is heading into earnings with an average analyst price target of $8.20 (compared to the current share price of $6.10).

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