Himax raises Q1 profit outlook, shares surge

Stock Market Predictions

(Global Markets) - Taiwanese chip maker Himax Technologies Inc (HIMX.O) raised it first-quarter profit outlook citing strong sales at its display driver business, sending its shares up as much as 28 percent in early morning trade.

The company now sees a profit of 6.6 cents per American Depository Share compared with its earlier forecast of between 3 cents and 4 cents per ADS.

"First quarter is traditionally a low season. Our first quarter performance is a good indication that our business has bottomed out from the trough of last year," Chief Executive Jordan Wu said in a statement.

"We experienced (a) strong sale-through, particularly into the China market."

Himax, which makes chips used in flat panel displays and display drivers for LCD panels used in desktop monitors, television and mobile handsets, expects first-quarter revenue of $166.7 million.

Shares of the Taiwan-based company were trading up 21 percent at $2.33 on Thursday morning on the Nasdaq.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Sreejiraj Eluvangal)