Himax stock hit a 52-week high in February, but sell-offs in March spurred by the novel coronavirus pushed the company's share price near its 52-week low. There wasn't much in the way of business-specific news for the company in April, but positive momentum for the broader market prompted investors to pour back into the stock.
Himax stock has been volatile in recent years as some growth avenues have narrowed and other opportunities have taken longer than expected to materialize. Declining margins for the company's display chips for televisions and phones have squeezed performance, but the business' potential to deliver explosive growth if it can secure design wins for products in emerging categories including automotive displays, 3D imaging, and augmented-reality glasses has kept some investors interested.
Himax stock has slipped in May's trading. The company's share price is down roughly 8% in the month so far.
Himax published first-quarter earnings on May 9, delivering mixed results and guidance. The company posted non-GAAP (adjusted) earnings of $0.02 per share on revenue of $184.6 million. The average analyst target had called for earnings per share of $0.01 on sales of $186.63 million.
The company stated that it had limited visibility on its near-term performance outlook as a result of conditions created by the novel coronavirus and that it expected headwinds for its TV and automotive chips. However, the company noted it was seeing momentum for its touch-and-display-integration (TDDI) solutions for smartphones and Android tablets. It also said it was continuing research and development initiatives in potentially high-growth product categories including TDDI solutions for automobiles, 3D sensing, and AMOLED screens.