Himax Q2 Revenue Beat Masks EPS Miss, Negative Cash Flow
Himax Technologies posted a Q2 revenue beat that pushed the stock above its 200-day moving average, but EPS of $0.114 missed the $0.120 estimate by 5%, ending three consecutive quarterly beats. With f
HIMX Clears 200-Day Average on Q2 Sales Beat
NEW YORK, August 20 —
Himax Technologies, Inc. (HIMX) crossed its 200-day moving average this week, but the milestone lands alongside the stock's first quarterly earnings miss in four periods and negative $84 million in free cash flow. Reaching analyst consensus requires $1.30 in forward EPS, a 520% step-up from the $0.21 trailing figure.
- Forward P/E of 10.5x at $13.67; consensus forward EPS of $1.30 against a $0.21 trailing figure.
- Free cash flow: negative $84 million trailing, against $45 million operating cash flow and $290 million net debt.
The Miss That Broke the Streak
Himax, which supplies display driver ICs and timing controllers to panel manufacturers making televisions, PCs, laptops, and automotive displays, had beaten EPS estimates by 20%, 20%, and 66.7% in three straight quarters. A DCF calculator stress-testing the delivery timeline makes that gap concrete.
The Capex Bet Behind the Deficit
Himax is spending its way into the automotive digital cockpit. The company's automotive IC portfolio spans traditional driver ICs, OLED technologies, touch-and-display integration, and local dimming timing controllers for in-vehicle infotainment. That capex commitment produced a $129 million gap between operating and free cash flow over the trailing twelve months. Against $300 million in cash and $590 million in debt, the resulting $290 million net debt position limits how long Himax can absorb delays before the automotive ramp delivers. A 31.1% gross margin provides thin insulation in a supply chain where panel manufacturers squeeze on pricing.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| HIMX | $2.4B | 10.5x | +85.3% |
| UMC | $45.1B | 20.5x | +168.8% |
| ASX | $95.1B | 19.8x | +270.3% |
| SIMO | $8.5B | 15.7x | +227.2% |
| ON | $29.1B | 16.5x | +56.9% |
| AMBA | $3.2B | 63.1x | +13.0% |
Q3 Rewrites the Story Either Way
The bull case rests on the 200-day moving average cross and the analyst consensus target of $30.20, implying 121% upside from $13.67. That target requires the $1.30 forward EPS consensus; trailing results have covered a fraction. Insider ownership at 31.1% aligns management incentives, but alignment is not a delivery mechanism. Q3 EPS is the deciding number: if Himax resumes the beat pattern from three prior quarters with positive free cash flow, the forward multiple becomes defensible. If not, the 10.5x rests on promise, not trajectory. Run the free Himax Technologies, Inc. deep-dive →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
What happened in Himax Technologies Q2 earnings?
Himax reported Q2 EPS of $0.114 against a consensus estimate of $0.120, missing by 5% and ending three consecutive quarterly beats of 20%, 20%, and 66.7%. The company delivered a revenue beat alongside the EPS miss, which explains the stock's bounce but does not resolve the earnings shortfall.
Why is Himax Technologies free cash flow negative?
Himax generated $45 million in operating cash flow over the trailing twelve months but spent heavily on its automotive display IC portfolio, creating a $129 million gap between operating and free cash flow. The result is negative $84 million in trailing free cash flow against $290 million in net debt.
What is the HIMX analyst price target?
The analyst consensus target is $30.20, implying 121% upside from the $13.67 share price. That target requires $1.30 in forward EPS, a 520% step-up from the $0.21 trailing figure that current results have not confirmed.
What products does Himax Technologies make?
Himax supplies display driver ICs and timing controllers to panel manufacturers producing televisions, PCs, laptops, and automotive displays. Its automotive IC portfolio covers traditional driver ICs, OLED technologies, touch-and-display integration, and local dimming timing controllers for in-vehicle infotainment systems.
What is Himax Technologies forward P/E ratio?
Himax trades at a forward P/E of 10.5x based on a $13.67 stock price and $1.30 consensus forward EPS. On a trailing basis the stock trades at approximately 65x earnings, a gap that reflects the market pricing a large automotive ramp rather than current delivery.
Himax Technologies shares crossed above their 200-day moving average this week, days after the company reported better-than-expected Q2 revenue — yet its most recently recorded quarterly EPS came in below estimates, free cash flow runs negative $84 million, and reaching analyst consensus requires the stock to more than double from here.