Himax Shares Plunge Nearly 30% Following Weak Fourth-Quarter Revenue Guidance
Himax (HIMX) shares fell nearly 28% on Thursday after the fabless chip designer issued a significant downward revenue forecast for the fourth quarter. The company expects Q4 revenue to decline by 22% to 26% compared to the third quarter, citing an abrupt correction in demand for automotive display driver chips following China's National Day holidays. CEO Jordan Wu attributed the slump to aggressive prior purchasing by panel makers and overextended export expectations from Chinese automakers. While the company faces a short-term pullback due to inventory concerns in distribution channels, Himax maintains a positive long-term outlook for its automotive segment, projecting 10% full-year growth and significant increases in timing-controller sales.
Tickers: $HIMX
Topics: automotive chips earnings call market correction revenue guidance semiconductors