Himax Revenue Drops 14.4% YoY to $203.1M, EPS Plunges to $0.04
Fourth-quarter revenue totaled $203.1 million, beating estimates but falling 14.4% year-on-year, while EPS plunged to $0.04 from $0.14 a year ago. Operating margin shrank to 3.4% from 9.7% and inventory levels materially increased, triggering a 9% stock drop.
1. Fourth-Quarter Financial Results
Himax reported fourth-quarter revenue of $203.1 million, topping consensus forecasts but representing a 14.4% decline compared with Q4 2024. Earnings per share fell to $0.04 from $0.14 a year earlier, highlighting an accelerating downturn in core sales.
2. Profitability and Margins
The company’s operating margin compressed sharply to 3.4% from 9.7% in the prior-year quarter, reflecting higher per-unit costs and reduced absorption of fixed expenses. Net income margins narrowed as price pressure and volume declines weighed on profitability.
3. Inventory Build and Market Reaction
Inventories rose materially during the quarter, suggesting end-market demand weakness and potential for future write-downs. The combination of shrinking sales, margin erosion and bloated stock levels prompted a 9% plunge in share price on the day of the earnings release.